Royal Mail boss to step down after union fight

The chief executive of Royal Mail, Simon Thompson, is to resign after a tumultuous period of industrial action. The courier said it was in advanced stages of appointing a new chief executive, and Thompson had agreed to remain with the business until 31 October 2023 as part of the transition. 

Thompson said he had been “incredibly proud to lead Royal Mail during this crucial period in its 507-year history”. 

“The changes we have made, the infrastructure we have put in place, and the agreements negotiated with our trade unions mean that Royal Mail now has a chance to compete and grow.,” he said. “That is what I have always wanted, and it is now the right time to hand over to a new chief executive to deliver the next stage of the company’s reinvention. I would like to thank my team for their support during a difficult and important time of change.”

Last month, the company struck a deal with the Communication Workers Union. Under the terms of the agreement, International Distributions Services (IDS) – the parent company of the UK courier – will introduce a 10 per cent salary increase and a one-off lump sum of £500 for postal grade employees in Royal Mail and Parcelforce.

Thompson came under heavy scrutiny after appearances before the Business, Energy and Industrial Strategy (BEIS) committee this year. After MPs first questioned him in January, he was recalled for another try. 

“Since Mr Thompson appeared before the committee last week we’ve had significant quantities of evidence that suggest his answers may not have been wholly correct,” said MP Darren Jones in January. On Friday, Jones said “it was right” that Thompson resign. 

“The culture at Royal Mail must change and I hope this new chapter will recognise the importance of every worker and focus on delivering a sustainable future for the business,” he added.

The Communication Workers Union general secretary Dave Ward welcomed the news. Ward said Thompson had been “sidelined” from pay talks but blamed him for “relentless attacks” on union members within Royal Mail through changing work practices. 

The group’s full-year results will be published on 18 May.

Read more: End in sight for Royal Mail strike saga