Saudi Press

Saudi Arabia and the world
Thursday, Oct 02, 2025

Royal Mail boss issues union plea as costs crisis keeps prices 'under review'

Royal Mail boss issues union plea as costs crisis keeps prices 'under review'

Simon Thompson uses an interview with Ian King Live to make his case for a deal with the CWU as Royal Mail is threatened with strikes, threatening to open up a new front in what one union said this week could become a "summer of discontent".
The boss of Royal Mail has told Sky News it is keeping prices "under review" as costs surge across the business and that unions threatening strikes must understand the "changes that are required so we can compete in the market".

Simon Thompson was speaking as the company faces challenges to its modernisation plans across its business, with Unite currently balloting managers over proposed job losses.

The Communication Workers' Union (CWU) is also threatening industrial action but over pay.

The cost of living crisis has prompted a series of demands across the private sector for wage levels to rise in line with inflation - currently running at 9%.

Unions are also challenging any sniff of proposals to cut costs that could impact their respective memberships.

The CWU, which represents 115,000 postal workers at Royal Mail, has led strikes at so-called crown Post Offices in recent months and is also balloting workers at BT in a row over pay.

It accuses Royal Mail of profit greed at the expense of its members.

The various rows all build towards a potential "summer of discontent", as one union described the mood this week, which is set to gather steam in earnest next week.

That is when 50,000 rail workers across the country, including Tube staff in London, are due to walk out in battles for better pay and job security.

It is Royal Mail's modernisation plans, towards a more parcel-focused business, that are among the grievances for unions.

They include concerns about delivering parcels more widely on a Sunday following a £900m investment by the company to automate its network and create so-called "superhubs" - the first opening in Warrington - to bolster delivery capability.

Unite said it was opposing "plans to remove 542 managers" on top of 450 jobs already axed.

There is a pay offer of more than 5% on the table with the CWU, though the company has announced an "unconditional" 2% increase to take effect in July following a failure to reach an agreement over a rise linked to changes in terms.

Mr Thompson told Ian King Live the decision to bring in the increase was taken after talks with the union were "exhausted", as staff deserved help with the rising cost of living now.

"Next week... we will be back in the room with the CWU talking about the change and let's just be clear on this: what we've put on the table was a 5.5% pay increase - the 2% unconditional we've now paid," he explained.

"We would really love to sit down and discuss in a very positive way the changes that are required so that we can compete in the market."

He added that as part of the 5.5% pay proposal there was a 2% "above and beyond" bonus scheme.

On the prospect of further increases in parcel and first class stamp costs - which have risen by 4% and to 95p, respectively, this year - Mr Thompson said he could not rule out rises this year.

But he explained that while Royal Mail had already had to charge more because of rising costs for things such as power and fuel, it was also important that it maintained its competitiveness for partner retailers.
Newsletter

Related Articles

Saudi Press
0:00
0:00
Close
Altman Says GPT-5 Already Outpaces Him, Warns AI Could Automate 40% of Work
Trump Organization Teams with Saudi Developer on $1 Billion Trump Plaza in Jeddah
Electronic Arts to Be Taken Private in Historic $55 Billion Buyout
Colombian President Petro Vows to Mobilize Volunteers for Gaza and Joins List of Fighters
Nvidia and Abu Dhabi’s TII Launch First AI-&-Robotics Lab in the Middle East
UK, Canada, and Australia Officially Recognise Palestine in Historic Shift
New Eye Drops Show Promise in Replacing Reading Glasses for Presbyopia
Dubai Property Boom Shows Strain as Flippers Get Buyer’s Remorse
Top AI Researchers Are Heading Back to China as U.S. Struggles to Keep Pace
JWST Data Brings TRAPPIST-1e Closer to Earth-Like Habitability
UAE-US Stargate Project Poised to Make Abu Dhabi a Global AI Powerhouse
Trump and Starmer Clash Over UK Recognition of Palestinian State Amid State Visit
Saudi Arabia cracks down on music ‘lounges’ after conservative backlash
Saudi Arabia Signs ‘Strategic Mutual Defence’ Pact with Pakistan, Marking First Arab State to Gain Indirect Access to Nuclear Strike Capabilities in the Region
Sam Altman sells the 'Wedding Estate' in Hawaii for 49 million dollars
Turkish car manufacturer Togg Enters German Market with 5-Star Electric Sedan and SUV to Challenge European EV Brands
World’s Longest Direct Flight China Eastern to Launch 29-Hour Shanghai–Buenos Aires Direct Flight via Auckland in December
New OpenAI Study Finds Majority of ChatGPT Use Is Personal, Not Professional
Kuwait opens bidding for construction of three cities to ease housing crunch.
This Week in AI: Meta’s Superintelligence Push, xAI’s Ten Billion-Dollar Raise, Genesis AI’s Robotics Ambitions, Microsoft Restructuring, Amazon’s Million-Robot Milestone, and Google’s AlphaGenome Update
Indian Student Engineers Propose “Project REBIRTH” to Protect Aircraft from Crashes Using AI, Airbags and Smart Materials
Could AI Nursing Robots Help Healthcare Staffing Shortages?
Turkish authorities seize leading broadcaster amid fraud and tax investigation
Qatari prime minister says Netanyahu ‘killed any hope’ for Israeli hostages
Apple Introduces Ultra-Thin iPhone Air, Enhanced 17 Series and New Health-Focused Wearables
Big Oil Slashes Jobs and Investments Amid Prolonged Low Crude Prices
Social Media Access Curtailed in Turkey After CHP Calls for Rallies Following Police Blockade of Istanbul Headquarters
Did the Houthis disrupt the internet in the Middle East? Submarine cables cut in the Red Sea
Gold Could Reach Nearly $5,000 if Fed Independence Is Undermined, Goldman Sachs Warns
Uruguay, Colombia and Paraguay Secure Places at 2026 World Cup
Trump Administration Advances Plans to Rebrand Pentagon as Department of War Instead of the Fake Term Department of Defense
Tether Expands into Gold Sector with Profit-Driven Diversification
Trump’s New War – and the ‘Drug Tyrant’ Fearing Invasion: ‘1,200 Missiles Aimed at Us’
At the Parade in China: Laser Weapons, 'Eagle Strike,' and a Missile Capable of 'Striking Anywhere in the World'
Information Warfare in the Age of AI: How Language Models Become Targets and Tools
Israeli Airstrike in Yemen Kills Houthi Prime Minister
After the Shock of Defeat, Iranians Yearn for Change
YouTube Altered Content by Artificial Intelligence – Without Permission
Iran Faces Escalating Water Crisis as Protests Spread
More Than Half a Million Evacuated as Typhoon Kajiki Heads for Vietnam
HSBC Switzerland Ends Relationships with Over 1,000 Clients from Saudi Arabia, Lebanon, Qatar, and Egypt
Sharia Law Made Legally Binding in Austria Despite Warnings Over 'Incompatible' Values
Dogfights in the Skies: Airbus on Track to Overtake Boeing and Claim Aviation Supremacy
Tim Cook Promises an AI Revolution at Apple: "One of the Most Significant Technologies of Our Generation"
Are AI Data Centres the Infrastructure of the Future or the Next Crisis?
Miles Worth Billions: How Airlines Generate Huge Profits
Zelenskyy Returns to White House Flanked by European Allies as Trump Pressures Land-Swap Deal with Putin
Beijing is moving into gold and other assets, diversifying away from the dollar
Cristiano Ronaldo Makes Surprise Stop at New Hong Kong Museum
Zelenskyy to Visit Washington after Trump–Putin Summit Yields No Agreement
×