RMG.L Regulatory News (RMG)

Royal Mail plc

(Incorporated in England and Wales)

Company Number: 8680755

LSE Share Code: RMG

ISIN: GB00BDVZYZ77

LEI: 213800TCZZU84G8Z2M70

10 August 2022

NOTICE OF INDUSTRIAL ACTION RECEIVED FROM THE COMMUNICATION WORKERS UNION (CWU)

Royal Mail has received notification from the CWU that it intends to call upon its members to take strike action for 24 hours on the following days:

· 26 and 31 August 2022 for shifts beginning at or after 04:00 hours 

· 8 and 9 September 2022 for shifts beginning at or after 04:00 hours 

If the announced strike action takes place, it is expected that Royal Mail in the UK would be materially loss making in FY2022-23.

This decision by the CWU is an abdication of responsibility for the long-term job security of its members. In more than three months of talks, CWU has failed to engage meaningfully on the business changes required. The negative commercial impact of any strike action will only make pay rises less affordable and could put jobs at risk. 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 has contingency plans in place and will be working hard to minimise disruption and restore normal service as soon as possible.

Following the conclusion of negotiations with the CWU, including completing our mutually agreed Dispute Resolution Processes, Royal Mail announced it would award CWU grade colleagues in the UK an unconditional 2% pay increase, backdated to 1 April 2022. 

A further 3.5% increase is available, subject to agreeing on a series of changes and including a new 'above and beyond' bonus.

The CWU rejected this offer, worth up to 5.5%, which would add around £230 million to Royal Mail annual people costs at a time when the business is already loss making - in the Q1 trading update published on 20 July, Royal Mail announced it was losing a million pounds a day and the proposed pay deal adds more than half a million pounds a day to that figure. This can only be paid for with meaningful business change.

The CWU has balloted its members on pay, which returned a majority in favour of industrial action.

The CWU announced a second ballot on change on 27 July.

Enquiries:

Investor Relations

John Crosse

Email: investorrelations@royalmail.com

Royal Mail investor relations line: 020 7449 8183

Media Relations 

Jenny Hall

Phone: 07776 993 036

Email: jenny.hall@royalmail.com

Mark Mann

Phone: 07483 144 684

Email: mark.mann1@royalmail.com

Royal Mail press office: press.office@royalmail.com

Company Secretary

Mark Amsden

Email: cosec@royalmail.com  

FORWARD-LOOKING STATEMENTS

This document contains certain forward-looking statements concerning the Group's business, financial condition, results of operations and certain Group's plans, objectives, assumptions, projections, expectations or beliefs with respect to these items. Forward-looking statements are sometimes, but not always, identified by their use of a date in the future or such words as 'anticipates', 'aims', 'due', 'could', 'may', 'will', 'would', 'should', 'expects', 'believes', 'intends', 'plans', 'potential', 'targets', 'goal', 'forecasts' or 'estimates' or similar expressions or negatives thereof.

Forward-looking statements involve known and unknown risks, uncertainties and other factors, which may cause the Group's actual financial condition, performance and results to differ materially from the plans, goals, objectives and expectations set out in the forward-looking statements included in this document.

All written or verbal forward-looking statements, made in this document or made subsequently, which are attributable to the Group or any persons acting on its behalf are expressly qualified in their entirety by the factors referred to above. Accordingly, readers are cautioned not to place undue reliance on forward-looking statements. No assurance can be given that the forward-looking statements in this document will be realised; actual events or results may differ materially as a result of risks and uncertainties facing the Group. Subject to compliance with applicable law and regulation, the Group does not intend to update the forward-looking statements in this document to reflect events or circumstances after the date of this document, and does not undertake any obligation to do so.