Talks to avert first nationwide postal strike since privatisation enter crucial phase as Royal Mail prepares to unveil big jump in profits
Talks to avert the primary nationwide postal strike since privatisation have entered an important phase as Royal Mail prepares to unveil an enormous jump in profits.
The five hundred-year-old company is locked in an increasingly high-stakes pay dispute with the union representing its 115,000 members.
Talks: Royal Mail is locked in an increasingly high-stakes pay dispute with the union representing its 115,000 members
Royal Mail also wants posties to work Sundays to compete with the likes of Amazon and DPD as a part of plans to modernise the service.
The delivery giant has recommend a pay increase of as much as 3.5 per cent for this yr, including backdated pay and a further rise when negotiations conclude.
It’s also offering a recent ‘above-and-beyond’ bonus, value as much as 2 per cent, for workers who hit productivity targets
However the offer, 5.5 per cent if targets are met, is opposed by the Communication Staff Union (CWU). It wants a ‘no strings’ pay rise according to inflation – now estimated to hit 10 per cent by the top of this yr.
The Mail on Sunday has learned the 2 sides have entered right into a formal ‘dispute resolution process’ to try to achieve a deal.
If no agreement is found by the top of this month, the CWU says it should call a strike ballot. A strike could be the primary in almost a decade. Union sources say the talks are currently ‘deadlocked’.
Royal Mail – privatised in three stages between 2013 and 2015 – is anticipated to offer an update on negotiations this Thursday when it broadcasts results.
Analysts forecast full-year profits of around £720million, up from £664million the previous yr.
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