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Royal Mail owner puts cost of strikes at £200m and questions resolve of CWU members | Business News


Royal Mail’s parent company raised its cost estimate for industrial action to date to £200m and claimed that up to 12,500 union members worked during the days of the strike.

International Distribution Service (IDS) says 18 days walk at Royal letter helped push the division to an operating loss of £295 million in the first nine months of the financial year to the end of December.

It reported that revenue at Royal Mail was down nearly 13% year-on-year in 2021, with a drop in mail and COVID testing kits also contributing.

IDS also blamed “weaker retail trends” in the tougher economy.

Revenue at Royal Mail during the key Christmas quarter – which was hampered by strike action in December – fell 16.7 per cent.

There are challenges on several fronts ahead for Royal Mail.

Read more:
Royal Mail boss accused of ‘inconsistency’ in evidence with MPs

A new vote for industrial action is taking place among its 112,000 frontline employees – members of the Association of Communications Workers who have resisted the proposed modernization plans and want one. improved salary agreement.

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‘Why are you rewarded?’

There is no end to the bitter – and personal – dispute with company and union leaders squeezing each other in an overt battle for sympathy.

The run-up to the holiday season saw an escalation in the war of words amid complaints from union members that the company had brought in ‘dirty’ contractors to help clear the backlog. .

Royal Mail is also continuing to grapple with disruptions to overseas parcel deliveries due to the incident ransomware attack.

IDS said that due to problems in its business, it had forecast an adjusted operating loss of around £400 million at Royal Mail for the financial year to the end of March and negative trading cash flows for 2024.

It warned that the outlook for the full year is based on no further strike dates in the fourth quarter and CWU’s acceptance of its “best and last” pay offer.

IDS shares have lost more than half their value since the start of 2022, prompting the company to consider phasing out Royal Mail.

The threat is a consequence of the UK company’s underperformance.

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