Royal Mail CEO Simon Thompson could be set to step down

The embattled CEO of Royal Mail is expected to leave the company in the coming days, following the high-profile industrial dispute with the Communication Workers Union (CWU).

Simon Thompson, who earned just over £750,000 last year as head of the ailing postal firm, could step down as early as this week, ahead of the publication of the group’s financial performance on 18 May.

Royal Mail’s parent company International Distributions Services (IDS) could announce that Thompson is to step down in the coming days, according to reports.

Sky News reports that industry sources say Thompson has become disillusioned with the role and that the IDS board believes the company requires fresh leadership after the bitter industrial dispute draws to a close.

Thompson’s public image has suffered greatly as a result of the dispute, particularly following two bruising sessions with the Business, Energy and Industrial Strategy (BEIS) select committee.

Royal Mail and IDS have refused to comment on speculation over Thompson’s future at the company.

MPs took the highly unusual measure of asking Thompson and other senior Royal Mail staff to take the oath before giving evidence in the second session, after the committee said they felt Thompson had previously misled them about working practices in the company.

Questions have been raised about Thompson’s suitability for the role throughout his tenure, having taken on the top job at Royal Mail just over two years ago

Meanwhile, CWU members are set to receive ballots to vote on the deal endorsed by the union next week. Ballots will be dispatched on 17 May, with the results set to be announced on 7 June.

The deal, which sees a number of changes to working conditions and includes a pay offer worth around 9% over three years, has been met with some criticism from workers.

Many members are particularly concerned about changes to start and finish times, with some saying the new system will effectively force workers to carry out unpaid overtime.

It is unclear what further action the union will take if workers vote against the deal. Royal Mail has said the deal represents their final offer. The union did secure backing for further industrial action from workers following a re-ballot in February, leaving open the door for further strikes until August.

If members do vote against the deal, it could be seen as a major failure of the union’s executive, who have endorsed the agreement and are currently in the process of engaging with reps and members, encouraging them to vote in favour of it.