Beautiful Virgin Islands

Tuesday, Jul 01, 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
Robots Compete in Football Tournament in China Amid Injuries
Trump Administration Considers Withdrawal of Funding for Hospitals Providing Gender Treatment to Minors
Texas Enacts Law Allowing Gold and Silver Transactions
China Unveils Miniature Insect-Like Surveillance Drone
OpenAI Secures Multimillion-Dollar AI Contracts with Pentagon, India, and Grab
Marc Marquez Claims Victory at Dutch Grand Prix Amidst Family Misfortune
Germany Votes to Suspend Family Reunification for Asylum Seekers
Elon Musk Critiques Senate Budget Proposal Over Job Losses and Strategic Risks
Los Angeles Riots ended with Federal Investigations into Funding
Budapest Pride Parade Draws 200,000 Participants Amid Government Ban
Southern Europe Experiences Extreme Heat
Xiaomi's YU7 SUV Launch Garners Record Pre-Orders Amid Market Challenges
Jeff Bezos and Lauren Sanchez's Lavish Wedding in Venice
Russia Launches Largest Air Assault on Ukraine Since Invasion
Education Secretary Announces Overhaul of Complaints System Amid Rising Parental Grievances
Massive Anti-Government Protests Erupt in Belgrade
Trump Ends Trade Talks with Canada Over Digital Services Tax
UK Government Softens Welfare Reform Plans Amid Labour Party Rebellion
Labour Faces Rebellion Over Disability Benefit Reforms Ahead of Key Vote
Jeff Bezos and Lauren Sánchez Host Lavish Wedding in Venice Amid Protests
Trump Asserts Readiness for Further Strikes on Iran Amid Nuclear Tensions
North Korea to Open New Beach Resort to Boost Tourism Economy
UK Labour Party Faces Internal Tensions Over Welfare Reforms
Andrew Cuomo Hints at Potential November Comeback Amid Democratic Primary Results
Curtis Sliwa Champions His Vision for New York City Amid Rising Crime Concerns
Federal Reserve Proposes Changes to Capital Rule Affecting Major Banks
EU TO HUNGARY: LET THEM PRIDE OR PREP FOR SHADE. ORBÁN TO EU: STAY IN YOUR LANE AND FIX YOUR OWN MESS.
Trump Escalates Criticism of Media Over Iran Strike Coverage
Trump Announces Upcoming US-Iran Meeting Amid Controversial Airstrikes
Trump Moves to Reshape Middle East Following Israel-Iran Conflict
Big Four Accounting Firms Fined in Exam Cheating Scandal
NATO Members Agree to 5% Defense Spending Target by 2035
Australia's Star Casino Secures $195 Million Rescue Package Amid Challenges
UK to Enhance Nuclear Capabilities with Acquisition of F-35A Fighter Jets
Russian Shadow Payments via Cryptocurrency Reach $9 Billion
Explosions Rock Doha as Iranian Missiles Target Qatar
“You Have 12 Hours to Flee”: Israeli Threat Campaign Targets Surviving Iranian Officials
Macron and Merz: Europe must arm itself in an unstable world
Germany and Italy Under Pressure to Repatriate $245bn of Gold from US Vaults
Airlines Evaluate Flight Cancellations Amid Escalating US-Iran Tensions
Starmer Invites Innovators to Join Government Talent Scheme
UK Economy’s Strong Opening Quarter Shows Signs of Cooling
Harrods Seeks Court Order to Secure Al Fayed Estate for Victims
BA and Singapore Airlines Cancel Dubai Flights Amid Middle East Tensions
Trump Faces Backlash from MAGA Base Over Iran Strikes
Meta Bets $14 B on Alexandr Wang to Drive AI Ambitions
WATCH: Israeli forces show the aftermath of a massive airstrike at Iran's Isfahan nuclear site
FedEx Founder Fred Smith, ‘Heart and Soul’ of the Company, Dies at 80
Chinese Factories Shift Away from U.S. Amid Trump‑Era Tariffs
Pimco Seizes Opportunity in Japan’s Dislocated Bond Market
×