Related Articles
Royal Mail has launched a search for a director to run its UK operations at a tough time for the former state-owned post monopoly.
Read more: Over 100,000 Royal Mail workers to vote on strike action
Royal Mail’s shares have dropped over 45 per cent in value over the last year as it struggles with a changing postal landscape swarming with competitors such as Hermes and Whistl.
Adding to the problems of the company, which has its roots in Tudor England, is an upcoming ballot of workers for strike action over job security and employment conditions.
The company’s board has now appointed headhunters to search for a director to help turnaround its struggling UK business, the Sunday Times reported.
It comes a year after the job was abolished when chief executive of UK post and parcels Sue Whalley was ousted due to the arm’s poor performance.
Chief executive Rico Back, who is Germand and domiciled in Zurich, has come under pressure since taking up his post in June last year.
He was criticised for a £6m welcome payment despite being an internal hire. Royal Mail declined to comment.
Back faces a nervy autumn with the Communication Workers Union (CWU) due to announce in October the results of its ballot on strike action.
Liberum analyst Gerald Khoo said: “Royal Mail’s ongoing dispute with its workforce poses significant problems, even if industrial action going into the peak season can be avoided.”
He said the mail firm faces a “deteriorating industrial relations picture and weakening macro outlook”.
Read more: Royal Mail to slash dividend 40 per cent after profit drops a third
Royal Mail shares were worth 213p on Friday, making the company worth £2.13bn. This marks a significant fall from the 330p share value upon privatisation in 2013.
Source link
