Royal Mail says change is the only option

Royal Mail said today that it would continue its drive to modernise the business to allow it to compete and thrive in the competitive market.

Commenting on the outcome of a strike ballot held by the Communication Workers Union on pay, conditions and the business plan, the company said that the union had balloted 127,000 people and that 66,064 people had voted for strike action. That’s around half of the number balloted and excludes more than 20,000 people who aren’t union members.

Royal Mail said that the CWU had tried to create a political issue rather than focussing on a pay deal which offers 2.5% on basic pay as well as a dividend of GBP 800 and a 50:50 productivity sharing scheme. Colleagues in Parcelforce, the group’s parcel’s division, have already voted to accept a similar pay offer on a recommendation by the CWU.

Commenting on the challenges facing the business, the Company highlighted that:

• One in five letters will be handled by our rivals this year
• Royal Mail has already lost 40% of the Bulk Mail business to the competition.
• The UK mails market is declining overall at the rate of 2.5% per annum
• Our competitors are 40% more efficient than we are, not because their people work harder than ours, but because they have already invested in modernising and mechanising their businesses

In light of these challenges, Royal Mail said it will be launching and communicating its business plans to all employees in the coming weeks and months, and that the drive to modernise at pace, and compete to win business, will continue.