Royal Mail studies £219m reduction due to strike motion | Royal Mail

Royal Mail posted a to start with-half loss of far more than £200m, blaming the economic fallout from ongoing strikes, a drop in parcel deliveries and an lack of ability to restructure the company amid a row with unions.

The postal provider, which is in talks with the Communications Workers’ Union (CWU) in an endeavor to avoid a Xmas Eve strike, reported an adjusted operating loss of £219m in the six months to September 25.

The struggling company warned previous month that it may need to have to reduce as quite a few as 10,000 work by August, soon after publishing a financial gain of 235 million kilos a year before.

Royal Mail described a 10.5% 12 months-on-yr drop in income to £3.6bn, while it was flat in comparison to pre-pandemic levels.

“As a outcome of administration actions, the impact of the strike has been contained,” its guardian organization, Worldwide Distributions Providers, explained on Thursday. “Whilst we are presently producing the needed modifications, negotiations with the CWU keep on. Need to even further industrial motion continue, negotiations will stop.”

Royal Mail expects to post a decline of between £350m and £450m for the latest money 12 months to the stop of March, which include the impression of the 12-working day strike or the CWU has informed the firm.

“We would want to do a deal with the CWU, but we are pushing alterations in any case to change our organization,” Royal Mail chief executive Simon Thompson said. “We’ve constantly been clear that we want alter to survive. We’ve started out turning the company close to and will do whichever it can take.”

The CWU, which represents Royal Mail’s additional than 115,000 postal staff, said personnel would up coming strike on November 24-25, a day of cut price procuring acknowledged as Black Friday, and on November 30 and December 1.

Nevertheless, talks that ended up because of to finish earlier this 7 days have been extended in hopes of achieving a deal.

“Negotiations, which ended up thanks to conclude on November 15, will go on to make it possible for for extra time to achieve a resolution,” a Royal Mail spokesman explained. “Nonetheless, provided the notice strike that commenced on November 24, time is tight.”

Royal Mail also reported it experienced entered into talks with the authorities about providing letters only 5 times a week – ending Saturday deliveries – at the earliest chance to restrict costs when volumes fell and change to a greater target on parcel deliveries.

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