Royal Mail tries to avert strike with pension deal

Royal Mail’s chief executive insisted today she will make a deal with postal workers over their pension, in a bid to avoid the company’s first nationwide strike since privatisation in 2013.

“This is a really important matter for the company and for our people and we are having very constructive discussions. I’m hopeful that we can avoid it,” Moya Greene said, adding any strike would be devastating for the business.

Royal Mail is closing its defined benefit pension scheme in March 2018, after declaring it unaffordable, but a replacement is still in negotiation with unions, who called the company’s recent offer an insult to employees.

Royal Mail reported pre-tax profits up by a quarter to £335 million, in what it said was a very challenging year.

The number of letters that Royal Mail delivered fell by 6%, which is at the top end of the decline it expects to see. Marketing mail fell by 8%.

Greene blamed the EU referendum for causing business uncertainty but said there was no sign business confidence was picking up, now that Brexit was certain.

In contrast parcel revenues, where Royal Mail has 53% of the market, climbed by 3% and the company’s international business saw 19% growth in international revenue.