Key Royal Mail investor’s frustration at pension deal
A major investor in Royal Mail has expressed anger at the management of the company according to reports by City AM. On Monday shares in the firm fell 14 % after it issued a profit warning, before falling closing down another 7 % yesterday.
Royal Mail has seen some recovery today, with shares trading 1.84 % higher.
City A.M. understands a top 10 institutional shareholder is unhappy with the company’s management, and in particular its handling of the pension deal it struck with unions earlier this year.
“There is frustration as the pension deal with the unions was presented as a win-win situation, but what wasn’t appreciated fully was the level of disgruntlement amongst the workforce,” the investor said.
The deal, which was reached back in February, included a 5 % pay increase for full-time employees, as well as the company opening the UK’s first ever collective defined contribution pension scheme.
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