Royal Mail faces threat of insolvency as fresh wave of strikes are planned
The Royal Mail’s future has been thrown into doubt after an apparent threat by bosses to plunge its loss-making postal service
into administration.
It comes as union chiefs warned of a fresh wave of strikes next month unless the firm improves its offer on pay, conditions and job security by Friday.
Action by more than 115,000 postal workers has left the service reeling.
Communication Workers Union executives met yesterday and after a Royal Mail spokesman again stressed the firm’s parlous plight, and news emerged of the alleged insolvency threat, a CWU spokesman said: “It is clear Royal Mail Group is in a serious financial situation.
Postal workers on strike in London (Thomas Krych/SOPA Images/REX/Shutterstock)“This is as a direct result of mismanagement and recklessness at the most senior level. Those individuals who have led the company into this crisis have no right to lead us out of it.
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“There is no positive future for Royal Mail without workforce support. Talks must succeed this week or the CWU will call further strike action.”
A Royal Mail spokesman said: “After months of talks, and numerous improvements to our offer, we are deeply concerned we have yet to reach an agreement.
“We remain committed to getting the right deal, which secures the future of Royal Mail and its workforce. It is not sustainable to lose over £1million a day.”
Royal Mail owner International Distributions Services – which also runs Parcelforce and GLS –has previously warned the group could be broken up due to losses.
If the postal service is declared insolvent, the Government would likely have to appoint an administrator.
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