Royal Mail shares jump on union pay proposals
Shares in Royal Mail jumped this afternoon after it proposed a six per cent three-year pay deal to the Communications Workers Union in a bid to avoid strike action.
The company’s share price increased 4.76 per cent after it announced its new pay proposals.
Earlier this month Royal Mail said the union was preparing for another strike ballot, after the postal service avoided industrial action over the Christmas period.
Royal Mail said the offer would mean an increase of more than 16 per cent between 1 April 2018 and 31 March 2023, but said it must deliver on a turnaround plan announced last year.
The firm’s Journey 2024 turnaround plan seeks to adapt to trends and turn Royal Mail into a more internationally focused parcel delivery business.
In its offer to the CWU, Royal Mail also said it will introduce a second van delivery in most parts of the country.
Shane O’Riordain, managing director of regulation, corporate affairs and marketing said: “Our proposal underlines our commitment to being the best employer in our industry.
“It maintains our policy of no compulsory redundancies for frontline operational colleagues. We will not become a gig economy employer. We will not introduce zero hours contracts for permanent employees. Nor would we look to outsource Royal Mail’s core operations.”
City A.M has contacted CWU for comment.