Royal Mail and the Communication Workers Union (CWU) have failed to reach an agreement after months of negotiations and strikes over pay and conditions. Royal Mail expressed deep concern about the breakdown in talks and stated that it had made significant efforts to resolve the dispute. The CWU confirmed its willingness to continue negotiations and indicated progress in several areas.
Royal Mail’s latest proposal includes a 10% pay increase in instalments from April 2022 until April 2024, which the company claims has already been paid. Additionally, the firm would offer a lump sum of £500-£1,500, depending on the option chosen, and has made changes to its original proposal, including abandoning modifications to allowances for current workers and implementing a profit-sharing arrangement.
The CWU announced that it will consult with its members before taking any further action, especially in light of the unacceptable pressures being deliberately placed on members by imposed revisions that might lead to failing quality of service.”
This failure to reach an agreement follows the two organisations’ commitment in early March to reopen talks with the goal of resolving the dispute by 12 March 2023.
Royal Mail has warned that further industrial action by the CWU could result in the company entering administration. The company is concerned that additional strikes may prompt significant customers to withdraw multi-million-pound contracts, which could result in Royal Mail’s entire business, including the universal service obligation to deliver to every address six days a week, and Parcel Force being declared insolvent.
Strikes have already resulted in the company losing £200m in business and covering striking staff.
In a letter to the union, Royal Mail stated that “In talks, you suggested to us that you were ‘becoming more comfortable’ with the risk of administration. If so, that is very misguided. It is important that everyone is clear that, if our finances come under worse pressure, the legislation does not provide for re-nationalisation, but instead a system called special administration.”
Royal Mail has expressed its commitment to reaching an agreement with the CWU, stating that “not transforming” the company is “not an option.” However, the failure to reach an agreement may have consequences for both the company and its employees.
