CWU union delivers bad news for bosses at Royal Mail | Business

Analysts at Liberum posted a “sell” note into Royal Mail’s letterbox yesterday sending the delivery group towards the bottom end of the index of top-tier stocks. As they downgraded Royal Mail from their previous “hold” and revised their price target for the shares down to 355p, Liberum warned of a “significant” squeeze to margins if it agrees with the pay deal proposed last week by the CWU, the trade union representing its front line workers.

While the union’s figure has not been disclosed, it is looking for an unconditional pay rise to match the rise in inflation, analysts noted. Liberum reckons the union will take a “robust stance” given surging inflation levels and the challenging working conditions created by the pandemic.

“A shorter working