GLS spin-off is greater threat to Royal Mail than job losses | Business

Beneath the dramatic headline threat of 10,000 job losses in Royal Mail’s unscheduled trading update were plans that could prove to be similarly divisive.

In the final passage of the update the board warned that unless a “significant” transformation was achieved, the separation of GLS, its profitable international parcels business, remained on the table.

The prospect of a big change comes amid an increasingly entrenched dispute with unions over below-inflation pay rises and workplace reforms. The Communication Workers Union (CWU) has rejected a 2 per cent pay rise with potential further increases of up to as much as 5.5 per cent if workers agree to new terms and conditions as Royal Mail tries to introduce more automation in its parcels sorting business.

Royal Mail, which