UK Royal Mail pledges profits bonus

The Royal Mail has agreed to pay postal workers a GBP400 bonus each if its profits reach GBP600m in the current financial year, its employees were told. The scheme, which will involve all 195,000 staff, follows the GBP1,074 bonus given to each worker earlier this year to reward performance over the three years from 2002-03 to 2004-05.

Announcing details of the bonus, Royal Mail warned it faced a “challenging” year as it gears up for full blown competition in the postal market from January 1. The organisation made a record profit of GBP537m in the last financial year. The government has announced an internal review, starting in September, into the future of the state-owned company, and ministers have signalled support for Royal Mail’s proposals to give an equity stake to employees.

The Communication Workers Union, the main union for Royal Mail staff, said it was seeking an urgent meeting with the state-owned company and the government about its “legitimate concerns” over the future.

Dave Ward, deputy general secretary, said the union had “always said it has no problem with our members sharing in the success of Royal Mail, but we strongly believe basic pensionable pay should be the number one priority”.

Mr Ward said that the union wanted the company to be “more honest with employees about their long-term agenda”.