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Royal Mail Registered Losses in the Half-yearly Financial Results, Due to Ongoing worker Strike

Industry: Transportation, Infrastructure and Logistics
Current: Company Performance

Parent company of Royal Mail is suffering from unstable finances due to growing inflation resulting in worker’s strike
Ongoing dispute over, pay hike demands, and working conditions, employees at Royal Mail are planning two 48-hour strikes that will fall on two of the busiest online shopping days during Christmas
Despite a £219 million loss in the first half of the year, Royal Mail proposed a new pay-for-change offer worth 9% over two years

Dispute Between Communication Workers Union (CWU) & Royal Mail Resulting in Ongoing strike

Companies across the UK are facing a surge in industrial action as soaring inflation fuels pay claims while labor remains scarce. Royal Mail and its largest labor union, the Communication Workers Union (CWU), have been engaged in a dispute over workers’ pay hikes being demanded to cope with soaring inflation and demand for improved working conditions, which has resulted in several days of strikes over the past few months. Additionally, the union intends to continue its strike through the Christmas season, which is expected to result in significant losses for the business.

Royal Mail’s Planned to Axe 10,000 Jobs Due to Continued Financial Losses

Royal Mail announced its plans to cut up to 10,000 jobs by the end of August 2023, attributing the decision to ongoing staff strikes that contributed to the first-half loss in 2022. Royal Mail’s decision came after employees staged the first of 19 planned walkouts in the run-up to Christmas. The worker’s strikes in the past few months caused delays in delivering agreed productivity improvements, and lower parcel volumes, resulting in losses for the company.

Royal mail group registered a revenue decline of 3.9% period-on-period in the first half of 2022 and an operating loss in Royal Mail of £219 million. The company is anticipating a continuous decline in revenue for the period 2022-23, owing to the ongoing economic pressure.

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