(Alliance News) - Royal Mail PLC on Tuesday warned that it will be "materially loss making" if the four-day strike organised by the Communication Workers Union takes place.
The London-based letter and parcel delivery company said the CWU has called for strike action on August 26 and August 31, as well as September 8 and September 9.
The decision follows a recent ballot for strike action, which saw members vote by 98% on a 77% turnout to take action.
CWU General Secretary Dave Ward on Tuesday said: "Nobody takes the decision to strike lightly, but postal workers are being pushed to the brink.
"There can be no doubt that postal workers are completely united in their determination to secure the dignified, proper pay rise they deserve," Ward added.
Royal Mail said, in response to heightened discussions with CWU, it had agreed a 2% pay rise. It added that a further 3.5% increase is available, subject to agreeing on a series of changes and including a new 'above and beyond' bonus.
Royal Mail explained that this offer would add around GBP230 million to its annual people costs, at a time when the business was already loss making.
The CWU has since rejected this offer.
Royal Mail also warned that the "negative commercial impact" of the strike will make pay rises less affordable and could put jobs at risk. The company also expects its UK division to be "materially loss making" in financial year 2023, if the strike goes ahead.
However, it added that it has contingency plans in place to minimise disruption and restore normal service as soon as possible.
"The CWU has a responsibility to recognise the reality of the situation Royal Mail faces as a business, and to engage urgently on the changes required.
"Royal Mail remains ready to talk with the CWU to try and avert damaging industrial action and prevent significant inconvenience for customers. But any talks must be about both change and pay."
Royal Mail shares were down 1.5% to 262.50 pence each in London on Wednesday morning.
By Sophie Rose; sophierose@alliancenews.com
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