Talks to avert the first nationwide postal strike since privatization enter a crucial phase as Royal Mail prepares to unveil a big jump in profits
Talks to avert the first nationwide postal strike since privatization have entered a crucial phase as Royal Mail prepares to announce a big jump in profits.
The 500-year-old company is locked in an increasingly high-profile wage dispute with the union that represents its 115,000 members.
Talks: Royal Mail is locked in an increasingly high-stakes wage dispute with the union that represents its 115,000 members
Royal Mail also wants postmen to work on Sundays to compete with the likes of Amazon and DPD as part of plans to modernize the service.
The delivery giant has proposed a pay rise of up to 3.5 per cent this year, including retrospective salaries and an additional increase once negotiations are complete.
It also offers a new “Over and Beyond” bonus of up to 2 percent for employees who meet productivity goals
But the offer, 5.5 percent if targets are met, is turned down by the Communication Workers Union (CWU). She is calling for a “binding” pay rise in line with inflation – now estimated at 10 per cent by the end of this year.
The Mail on Sunday has learned the two sides have entered a formal “dispute settlement” process to try to reach an agreement.
If no agreement is reached by the end of this month, the CWU says it will call a ballot. A strike would be the first in almost a decade. Union sources say talks are “stalled” at the moment.
Royal Mail – privatized in three phases between 2013 and 2015 – is expected to give an update on the negotiations this Thursday when it announces the results.
Analysts are forecasting full-year profits of around £720m compared to £664m last year.
Talks to avert first nationwide postal strike since privatization in crucial phase
Source link Talks to avert first nationwide postal strike since privatization in crucial phase