Business

Royal Mail’s £2bn to shareholders as it refuses staff decent pay rise and plans jobs axe

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Royal Mail has committed £1.9bn to shareholders since its privatization in 2013 and chief executive Simon Thompson secured a £753,000 salary and benefits deal in the most recent financial year.

Daniel Krytinsky’s total net worth is estimated to be £3 billion

Royal Mail has committed £1.9 billion to shareholders since its privatization.

But President Simon Thompson refuses to raise staff salaries properly as inflation soars. The union also warns that Jobs is facing the axe.

As postal workers struggle with the cost of living crisis, employers enjoy huge wages and bonuses while spending billions of pounds on shareholders.

But miserly bosses are refusing to give employees a proper pay rise as inflation rages and a union claims the company plans to cut up to 25,000 jobs and reduce letter delivery to three days a week.

Royal Mail has committed £1.9bn to shareholders since its privatization in 2013 and chief executive Simon Thompson secured a £753,000 salary and benefits deal in the most recent financial year.

Read:These tasty ‘bacon’ rashers all have something weird in common – would you swap them with your Full English favourite?

On Friday, 115,000 employees will start a new 48-hour strike.







Royal Mail cars are parked at the Tonbridge delivery office in Kent as the strike begins
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picture:

Palestinian Authority)

The Communications Workers Union announced eight more days of stoppages, including Christmas Eve. Postal and rail workers could unite in a wave of coordinated strikes as industrial strikes spread through the public and private sectors like wildfire.

CWU General Secretary Dave Ward said: “This is a brutal attack on one of the UK’s greatest businesses.

“We are looking at the end of Royal Mail as we know it, and we cannot accept it.”

The dispute focuses on issues from wages and allowances to the use of agency workers and start times.






Read:Energy bills and food drive UK inflation to 40-year high of 11.1% – business live | Business


Postal workers from the Communications Workers’ Union line up in a picket line at a delivery office in Camden Town, northwest London
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picture:

Palestinian Authority)

Royal Mail announced what it described as its “best and last offer” on Wednesday, including a pay rise of up to 9% but over 18 months.

The company claims it has lost £100m this year due to strikes, and has accused the union of holding customers “to ransom”.

But the CWU claims the deal is worth up to 7%, with restrictions attached to any settlement.

She referred to the profits of £758m, or £2m per day, made by the group in the year ending at the end of March. Although the CWU has not put out a figure for wage demands, giving staff an 11% increase in line with inflation would cost around £500m.

The union claims the workforce has fallen by 9,000 since privatization, with Royal Mail recently announcing another 10,000 job losses. Mr Ward claimed: “We’ve seen more and more of their schemes because we really think we’re looking at 20,000, 25,000 job losses.”

The union also understands that Royal Mail is considering closing up to eight of the 39 large postal centers across the country.

Mr. Ward said the CWU has met with the RMT union. Asked if the strikes could be coordinated, he replied: “We cannot rule that out but the focus is on conflict resolution.

“We should talk to each other more because we have very similar problems.”







CWU General Secretary Dave Ward joins the sit-in outside the Royal Mail Delivery Office in Camden
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picture:

Vuk Valcic/ZUMA Press Wire/REX/Shutterstock)

Daniel Krytinski is the largest shareholder in Royal Mail’s parent company, International Distribution Services. CWU understands that the Czech billionaire has recently bought £5m worth of shares.

Next week, the union will invite Mr. Krytinsky and other top investors to join a meeting to hear his side of the argument.

Mr Thompson’s salary and benefits package included a £142,000 bonus despite a Royal Mail investigation into missed delivery targets.







Postal workers in a picket line at the Central Delivery Office and Post Center in Birmingham
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picture:

Palestinian Authority)

Finance director Mick Jevons earned £1.4m last year.

But Royal Mail customers have been hurt by the rising stamp prices. In 2013 the cost of first class postage was 60p. Now 95p, up 58%.

Second class stamps have gone up from 50p to 68p. Royal Mail said its profit came on the £4.8bn investment since privatization and reflected the performance of GLS.

A spokesperson claimed “We do not acknowledge” talk of 25,000 job losses or speculation about reducing letter delivery to three days a week.







A sign on a door advising closure due to strike action
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picture:

Palestinian Authority)

While he said the same about eight post centers that could be closed, he confirmed that the review meant closure was “likely”.

Referring to the CWU today, Mr. Thompson insisted: “We are always available to talk. They still have a chance to save Christmas and their members’ jobs.”

He also said the company’s modernization plans were “changes customers want,” highlighting plans for the seven-day package delivery service.

Our team of cost-of-living experts is here to help you through a very challenging year.

They will provide you with the latest financial news and also provide expert advice.

Whether it’s because of rising energy bills, the cost of the weekly shop, or increased taxes, our team will be with you all the time.

Every Thursday at 1pm they will be participating in a live event on Facebook to answer your questions and give their advice. Visit facebook.com/dailymirror/live to watch. You can read more about our team of experts here.

If you have a question – or would like to share your story – please email [email protected]

Handing over more than 500 years

  • Royal Mail is one of the oldest organizations in the world.
  • Its origins trace back more than 500 years to 1516 when Henry VIII knighted Brian Tooke, the first postmaster, who established major postal towns across the country and built an official postal network for king and court.
  • In 1635, the postal service was opened to the general public.
  • The name Royal Mail was given to the service in 1784 when mail coaches became a common sight across the country.
  • Post boxes were introduced to the British mainland in 1853.
  • Royal Mail and Post Office were split up in 2012 and are now two separate companies.
  • On 15 October 2013, Royal Mail became a listed company with shares traded on the London Stock Exchange.

Daniel Krytinsky

Billionaire Daniel Krytinski is not only the largest single shareholder in Royal Mail’s parent company, but also owns the second largest stake in supermarket giant Sainsbury’s.

The 46-year-old also owns a large part of West Ham United Football Club Sparta Prague.

Mr Kretinsky’s total wealth is estimated at £3 billion, and his girlfriend is show vault champion Anna Kelnerova, 25.







Anna Kelnerova is the girlfriend of Daniel Krytinsky
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picture:

Smg/REX/Shutterstock)







Show jumping at the 2020 Tokyo Olympics
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picture:

Michael Reynolds/EPA-EFE/REX/Shutterstock)

Described as secretive, he is said to have gotten his nickname “Czech Sphinx” from his investment style, making his fortune snapping up unloved assets, including old coal-fired power plants and giving them a new lease on life.

He stated that this year he bought a castle near Paris, which the French media referred to as “little Versailles”, for £37 million.

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