Beautiful Virgin Islands

Tuesday, Apr 22, 2025

Royal Mail boss issues union plea as costs crisis keeps prices 'under review'

Royal Mail boss issues union plea as costs crisis keeps prices 'under review'

Simon Thompson uses an interview with Ian King Live to make his case for a deal with the CWU as Royal Mail is threatened with strikes, threatening to open up a new front in what one union said this week could become a "summer of discontent".
The boss of Royal Mail has told Sky News it is keeping prices "under review" as costs surge across the business and that unions threatening strikes must understand the "changes that are required so we can compete in the market".

Simon Thompson was speaking as the company faces challenges to its modernisation plans across its business, with Unite currently balloting managers over proposed job losses.

The Communication Workers' Union (CWU) is also threatening industrial action but over pay.

The cost of living crisis has prompted a series of demands across the private sector for wage levels to rise in line with inflation - currently running at 9%.

Unions are also challenging any sniff of proposals to cut costs that could impact their respective memberships.

The CWU, which represents 115,000 postal workers at Royal Mail, has led strikes at so-called crown Post Offices in recent months and is also balloting workers at BT in a row over pay.

It accuses Royal Mail of profit greed at the expense of its members.

The various rows all build towards a potential "summer of discontent", as one union described the mood this week, which is set to gather steam in earnest next week.

That is when 50,000 rail workers across the country, including Tube staff in London, are due to walk out in battles for better pay and job security.

It is Royal Mail's modernisation plans, towards a more parcel-focused business, that are among the grievances for unions.

They include concerns about delivering parcels more widely on a Sunday following a £900m investment by the company to automate its network and create so-called "superhubs" - the first opening in Warrington - to bolster delivery capability.

Unite said it was opposing "plans to remove 542 managers" on top of 450 jobs already axed.

There is a pay offer of more than 5% on the table with the CWU, though the company has announced an "unconditional" 2% increase to take effect in July following a failure to reach an agreement over a rise linked to changes in terms.

Mr Thompson told Ian King Live the decision to bring in the increase was taken after talks with the union were "exhausted", as staff deserved help with the rising cost of living now.

"Next week... we will be back in the room with the CWU talking about the change and let's just be clear on this: what we've put on the table was a 5.5% pay increase - the 2% unconditional we've now paid," he explained.

"We would really love to sit down and discuss in a very positive way the changes that are required so that we can compete in the market."

He added that as part of the 5.5% pay proposal there was a 2% "above and beyond" bonus scheme.

On the prospect of further increases in parcel and first class stamp costs - which have risen by 4% and to 95p, respectively, this year - Mr Thompson said he could not rule out rises this year.

But he explained that while Royal Mail had already had to charge more because of rising costs for things such as power and fuel, it was also important that it maintained its competitiveness for partner retailers.
Newsletter

Related Articles

Beautiful Virgin Islands
0:00
0:00
Close
Nightlife in the streets of Manchester
In God We Profit
Cultural Battles in the Vatican: The Candidates in the Battle for the Holy See and Pope Francis's Testament
Global Leaders Pay Tribute to Pope Francis Following His Death
Wild Chimpanzees Observed Bonding Over Alcoholic Fruit
US Federal Reserve Chair Issues Warning on Tariff Impact
UK Prison Officers Demand Electric Stun Guns Amid Safety Concerns
China, China, China!
Australian National Charged as Mercenary for Fighting in Ukraine
Israel Considers Limited Strikes on Iran's Nuclear Facilities Amid Diplomatic Efforts
Prince Andrew Joins Royal Family Attends Easter Sunday Service at Windsor Castle
Saudi Arabia Offers Max Verstappen Unprecedented Deal to Join Aston Martin
Global Pistachio Shortage Amid Rising Demand for 'Dubai Chocolate'
Trump is assembling a coalition of Western leaders aligned with the MAGA vision, strengthening a unified front for global change
IMF Predicts No Global Recession Amid Trade Tensions
Here’s a police officer with a brilliant gift for swift education
"Some complain that we put thousands in prison. In reality, we set millions free."
This is Vienna, Austria in 2025.
Boeing Jet Returns to US from China Amid Tariff War
Canadian Federal Election: Candidates' Positions on US-Canada Relations and Donald Trump
Resentencing Hearing for Menendez Brothers Who Killed Their Parents Delayed Amid Legal Disputes
Australian Woman Gives Birth To Stranger's Baby In IVF Mix-up
US Sets Deadline for Russia-Ukraine Peace Deal Brokerage
Italy Introduces 'Sex Rooms' in Prisons for Inmates
California Launches Legal Challenge Against Trump Administration's Tariffs
"Groundless": China Dismisses Zelensky's Claims It's Supplying Arms To Russia
UK Psytrance Festival Cancelled Amid Local Protests Over Noise Concerns
French Far-Right Writer Renaud Camus Denied Entry to UK
UK Police Force Updates Search Policy for Trans Individuals in Custody
Italian Prime Minister Giorgia Meloni Meets with Donald Trump to Discuss EU-US Trade Tensions
Canada's Federal Party Leaders Engage in Final Debate Ahead of General Election
Ukraine and US Sign Outline of Minerals Deal
Fast Food Chain Refuses to Apologize for Online Comment About Katy Perry's Space Voyage
New York Attorney General Letitia James Faces Criminal Referral for Alleged Mortgage Fraud
Mark Cuban admits support for Trump executive order: ‘Gotta be honest’
US Senator Meets with Deported Immigrant in El Salvador Amid Custody Dispute
U.S. State Department Raises El Salvador’s Safety Ranking, Making It Safer Than France and Other European Nations
UK Government Assumes Control of British Steel's Scunthorpe Plant Amid Shutdown Threat
UK MP Wera Hobhouse Denied Entry to Hong Kong During Family Visit
Bangladesh Issues Arrest Warrant for UK MP Tulip Siddiq
China Urges United States to Cancel Tariffs Amid Escalating Trade Tensions
The Empire’s USD Pyramid Scheme Is Working Brilliantly—So Why ‘Fix’ It?
China Raises Tariffs on U.S. Goods to 125% Amid Escalating Trade Dispute
Elon Musk Reports $150 Billion in Projected Government Savings Amid Fraud Investigations
U.S. and Panama Finalize Defense Agreements Amid Canal Access and Chinese Influence Concerns
China Stands Firm Amidst Trade Disputes with the US: A Factual Analysis
U.S. Tariff Escalation Sparks Global Trade Tensions
Helicopter crashes in NYC with four people on board.
Australia Dismisses China's Suggestion to Collaborate Against US Tariffs
EU Postpones Response to US Tariffs
×