(Sharecast News) - Shares in UK letter and parcel carrier Royal Mail fell more than 5% on Wednesday after the union representing staff said they would ballot for industrial action over pay.
More than 115,000 will be balloted in the coming weeks on whether to take industrial action over the company's 2% pay rise, according to the Communication Workers' Union (CWU).
The announcement came as the biggest rail strikes in more than 30 years crippled the UK's train network and the London Underground, in an increasingly acrimonious dispute over pay, jobs and conditions.
CWU deputy general secretary Terry Pullinger said Royal Mail was imposing a pay of increase of 2% on workers, at a time when UK inflation hit a 40-year high of 9%, with the Bank of England forecasting CPI to hit 11% as food and energy prices erode any wage increases.
"Their conduct, and particularly the imposition of such an aggressive pay offer, has eroded trust among loyal employees," he said.
Ballot papers will be sent out on 28 June, with the result announced on 19 July.
