Royal Mail warns of thousands of job cuts as it sees widening losses

LONDON, England: As losses mount, England’s Royal Mail could eliminate 10,000 jobs, and warned of even more staff reductions if planned strikes go ahead.

The Royal Mail is in the midst of a labor dispute with its largest union, the Communication and Workers Union (CWU), representing 115,000 Royal Mail postal workers.

Strikes were held in September and early October, and the union is calling for additional strikes over pay and operational changes.

Shares of Royal Mail fell by 17 percent last week on news of continuing labor problems.

“Royal Mail urges CWU to immediately call off planned strike actions and embrace our offer..to urgently find a resolution to the current dispute,” said Royal Mail management.

Meanwhile, the Financial Times has reported that Royal Mail had proposed cutting salaries for new employees by some 20 percent, from roughly 25,000 pounds ($27,917.50) to 20,000 pounds and recruit more temporary staff.

Mail officials said 5,000 to 6,000 jobs could be automated by the end of August 2023, while up to 10,000 positions would be eliminated on a rolling 12 month basis.

“This announcement is holding postal workers to ransom for taking legal industrial action against a business approach that is not in the interests of workers, customers or the future of Royal Mail,” CWU General Secretary Dave Ward said.

As the volume of letters falls, Royal Mail has been developing a plan to shift its focus to parcels, even as it seeks to cope with inflationary pressures, the rising cost-of-living and a decline in parcel volumes.

Royal Mail expects 2022 losses to reach 350 million pounds.