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The boss of Royal Mail has stepped down after being accused by MPs of an ‘unacceptable level of incompetence’ following a bruising series of strikes by its workforce.
Simon Thompson, who has headed the postal service since 2021, said he believes it is ‘the right time for the company to move forward under new leadership’ after an agreement was struck between the firm and union leaders last month.
The deal with the Communication Workers Union (CWU) will see staff get a 10 per cent salary increase and a £500 one-off payment.
Mr Thompson said: ‘I have 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.
Simon Thompson, who has headed the postal service since 2021, said he believes it is ‘the right time for the company to move forward under new leadership’ after an agreement was struck between the firm and union leaders last month.
A protester marches with a smoke flare in Whitehall during a strike organised by Royal Mail workers last December
‘That is what I have always wanted and it is now the right time to hand over to a new CEO 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.’
Keith Williams, chairman of Royal Mail parent firm International Distributions Services (IDS), said: ‘On behalf of the board, I would like to thank Simon for his significant contribution over more than five years at Royal Mail, both as CEO and previously as a non-executive director of the board.
‘As CEO, his leadership, resilience and unwavering drive to ensure that Royal Mail transforms for the benefit of our customers means we have set a clear path to turn the business around.
‘We are grateful for his dedication and what he has achieved at the company, and wish him well for the future.’
IDS had been expected to announce Mr Thompson’s departure before its annual results on May 18, ending a mostly unhappy tenure of just over two years.
Earlier this week, IDS shares fell 0.5 per cent, or 1.1p, to 244.7p as speculation swirled about his imminent exit.
The dispute between Royal Mail and its workers dragged on for nearly a year before a deal – which included a 10 per cent raise for staff – was struck last month.
It followed a bruising period for the company that saw posties walk out on strike for 18 days last year.
Thousands of postal workers staged a huge rally in Parliament Square in solidarity with the CWU (Communication Workers Union) postal strikes in December
The action caused chaos in delivery offices across the UK. And Royal Mail warned it was losing over £1million per day and would need to call in administrators if the situation did not improve.
While a semblance of calm has descended as workers decide whether to approve the peace agreement, a city analyst this week predicted Mr Thompson would need to leave before the wounds began to heal.
They said: ‘The deal is going to be difficult for Thompson to lead the organisation out of this… There’s too much bad blood between him and the staff.
‘A lot of the rank and file hate him. And it’s going to be very difficult for him to be an effective leader of those people. After the war it’s very difficult to forgive and forget.’
Andy McDonald, a member of the Commons business select committee, said Mr Thompson’s handling of the company has been ‘rocky to say the least’ and hoped his departure would mark ‘a new approach’ for the firm.
McDonald and other members of the committee accused Thompson earlier this year of ‘either an unacceptable level of incompetence or an unacceptable level of cluelessness’ in his running of the business.
It comes after it was yesterday reported how chronic staff shortages, industrial relations and a shake-up of working practices have left households in despair wondering where their post is as post bosses struggle to contain the chaos.
Chronic staff shortages, industrial relations and a shake-up of working practices have left households in despair wondering where their post is
Resident’s in Dorking, Surrey, said a ‘lack of postal vans’ have been to blame for the grinding halt of deliveries
The lack of letter deliveries has reaped devastation through communities as many have missed vital hospital appointments, speed or parking fines and cherished birthday wishes.
For weeks on end, families have been forced to suffer the consequences of Royal Mail disruption.
The postal service are expected to show a true insight into the disarray as they unveil figures this week showing that annual delivery performance has shrunk near-record lows, with insiders branding areas ‘postal deserts’, according to the Telegraph.
The new estimates suggest dozens of areas are affected by the chaos with some households collecting bundles of late letters from sorting offices.
South-east London residents have taken to social media to expose their reality as they claimed they ‘seem to only get post every two weeks’.
Others have claimed that sorting office staff told them many of their colleagues are off sick or on holiday.
Residents in Dorking, Surrey, appear to be battling a different problem with their local post services as they said online that a ‘lack of postal vans’ have been to blame for the grinding halt of deliveries.
Motoring Lawyer, Nick Freeman, otherwise known as Mr Loophole explained that the disruption to the postal deliveries could allow speeding motorists to escape a fine or points on their driving license.
Laws state anyone caught speeding must receive a notice of intended prosecution (NIP) within 14 days of the alleged offence.
He advised drivers to ‘keep the envelope’ if and when a speeding ticket arrives as a way to challenge the allegations in court.
A spokesman for Royal Mail told the Telegraph: ‘We are committed to improving our performance and accelerating Royal Mail’s transformation in order to restore service levels.’
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