Member Info for Investorjohn5

Sitting from the sidelines and observing I couldn’t agree more. It all looks very bitter and I assume the government wanted it off their books as they could never tame the union. Is it true that Rico has not even sat down in a room with the union and has just left it to his juniors to pass on messages? Some leadership that, surely he should be getting in that room and agreeing something in the middle.

I will sit on the fence some more and seeing how it pans out, it’s all well and good having assets etc and thinking they will support the share price but if this gets nasty quickly like it is currently looking you could end up having to dispose of those assets at fire sale prices to cover losses.

I’m afraid to say the market doesn’t look to have it wrong and I would expect the price to drop quickly to around 120 if the industrial environment goes south much more.

Thanks Isleworth

Seems abit of a mess, much like a lot of other things within the company it appears. Why would they need to deal with the union though, they either have to legal pay it or not pay it in law. There’s been several cases in the past 2 or 3 years before the courts which have ruled that it legally has to be paid so it will be interesting to see how it turns out.

You mentioned £1m a week it could cost, why so high? Surely overtime in a business should be at a minimum if management are managing properly. Is there really that much overtime taking place?

Thanks for the informative reply.

I have been doing some more research across various boards this weekend and was wondering if anyone knows if the company has put out any guidance regarding how much it is going to cost them to fully comply with the U.K. overtime holiday law. I’m not sure if how much overtime is worked within RM (it sounds like a lot though reading some sources). Various people state they have been getting out of court settlements for several hundred pounds and others are saying there is an upcoming court case against RM. Does anyone know the figures it’s likely to cost the company?

Thanks

I have been watching this closely from the sidelines for about 6 months now but am struggling to see exactly where the future for Royal Mail now is. The parcels strategy is clearly about 15 years too late and the future is obviously not in letters so where does the company go exactly? The value must be in the network and assets so do management have any plan to make the most of these?

I'm watching with interest but cant see a catalyst to a higher share price, surely now the dividend will have to be cut drastically or axed totally. Any thoughts?