Simon Thompson used an interview with Ian King Live to argue for a deal with the CWU as Royal Mail strikes are planned, threatening to create a new front in what one union claimed this week might be a “summer of discontent.”
Simon Thompson was commenting at a time when the corporation is facing obstacles to its modernization plans throughout its entire business, as Unite is presently conducting a vote on projected job cuts with management.
The Communication Workers’ Union (CWU) is also threatening industrial action but over pay.
The cost of living crisis has led to several private sector demands for salary increases by the current 9 percent inflation rate.
Additionally, unions oppose any cost-cutting ideas that could affect their respective memberships.
In recent months, the CWU, which represents 115,000 postal workers at Royal Mail, has led strikes at so-called crown post offices and is now balloting workers at BT in a salary dispute.
It accuses Royal Mail of profiteering at its members’ expense.
One union described the mood this week as a potential “summer of discontent,” which is expected to gain momentum in earnest the next week.
On that date, 50,000 train workers across the nation, including Tube employees in London, are scheduled to strike for improved wages and job security.
Unions are dissatisfied with Royal Mail’s plans for modernization, which aim to make the company more parcel-centric.
As a result of a £900 million investment by the corporation to automate its network and establish so-called “superhubs” – the first of which opened in Warrington – the company is concerned about delivering goods more widely on Sundays.
Unite stated that it opposed “plans to eliminate 542 managers” in addition to the 450 jobs already eliminated.
There is a wage offer of more than 5 percent on the table with the CWU, but the corporation has declared a “non-negotiable” 2 percent increase to go into effect in July due to the failure to reach an agreement on a hike tied to changes in conditions.
Mr. Thompson told Ian King Live that the decision to implement the rise was made after “exhausted” negotiations with the union, as the workforce needed assistance with the rising cost of living.
“Next week… we will be back in the room with the CWU to discuss the change, and let’s be clear: what we placed on the table was a 5.5 percent pay raise – the 2 percent unconditional we’ve already paid,” he clarified.
“We would love to sit down and discuss the necessary improvements for market competitiveness constructively.”
In addition to the 5,5 percent wage proposal, a 2 percent “above and beyond” incentive program was also proposed.
Mr. Thompson stated that he could not rule out future increases in the parcel and first-class stamp prices this year, which have increased by 4 percent and to 95 pence, respectively.
However, he noted that, even though Royal Mail has previously had to increase prices due to increased costs for items like fuel and electricity, the company needed to retain its competitiveness with partner retailers.
