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| Royal Mail to axe up to 10,000 jobs as losses rise | Royal Mail to axe up to 10,000 jobs as losses rise |
| (about 2 hours later) | |
| Royal Mail has announced plans to cut 10,000 jobs by next August, blaming ongoing strike action and rising losses at the business. | Royal Mail has announced plans to cut 10,000 jobs by next August, blaming ongoing strike action and rising losses at the business. |
| The postal company said it will begin notifying workers of its plan, which includes up to 6,000 redundancies. | The postal company said it will begin notifying workers of its plan, which includes up to 6,000 redundancies. |
| Outside of the redundancies the firm will cut roles through natural attrition, for example by not replacing workers who leave. | Outside of the redundancies the firm will cut roles through natural attrition, for example by not replacing workers who leave. |
| Royal Mail also said it expects its full-year losses to hit £350m. | Royal Mail also said it expects its full-year losses to hit £350m. |
| It said this included "the direct impact of eight days of industrial action" as well as lower volumes of parcels being posted. | It said this included "the direct impact of eight days of industrial action" as well as lower volumes of parcels being posted. |
| But the firm warned that losses could reach as much as £450m "if customers move volume away for longer periods" following strike action. | But the firm warned that losses could reach as much as £450m "if customers move volume away for longer periods" following strike action. |
| Why is everyone going on strike? | Why is everyone going on strike? |
| Are wages keeping up with inflation? | Are wages keeping up with inflation? |
| Royal Mail's chief executive Simon Thompson said: "This is a very sad day. I regret that we are announcing these job losses. We will do all we can to avoid compulsory redundancies and support everyone affected." | Royal Mail's chief executive Simon Thompson said: "This is a very sad day. I regret that we are announcing these job losses. We will do all we can to avoid compulsory redundancies and support everyone affected." |
| Royal Mail workers, who are members of the Communication Workers Union, this week began a fresh round of strikes over pay and conditions which will include 19 days of industrial action, including Black Friday. | Royal Mail workers, who are members of the Communication Workers Union, this week began a fresh round of strikes over pay and conditions which will include 19 days of industrial action, including Black Friday. |
| The next strike date is scheduled for 20 October followed by a further walk-out on 25 October. | The next strike date is scheduled for 20 October followed by a further walk-out on 25 October. |
| The CWU's general secretary, Dave Ward, said Royal Mail's announcement "is the result of gross mismanagement and a failed business agenda of ending daily deliveries, a wholesale levelling-down of the terms, pay and conditions of postal workers, and turning Royal Mail into a gig economy style parcel courier". | The CWU's general secretary, Dave Ward, said Royal Mail's announcement "is the result of gross mismanagement and a failed business agenda of ending daily deliveries, a wholesale levelling-down of the terms, pay and conditions of postal workers, and turning Royal Mail into a gig economy style parcel courier". |
| But Mr Thompson said on Friday: "Each strike day weakens our financial situation. | But Mr Thompson said on Friday: "Each strike day weakens our financial situation. |
| "The CWU's decision to choose damaging strike action over resolution regrettably increases the risk of further headcount reductions." | "The CWU's decision to choose damaging strike action over resolution regrettably increases the risk of further headcount reductions." |
| Royal Mail said that if workers go ahead with further walk-outs "the loss for the full year would increase materially and may necessitate further operational restructuring and headcount reduction". | Royal Mail said that if workers go ahead with further walk-outs "the loss for the full year would increase materially and may necessitate further operational restructuring and headcount reduction". |
| During the first half of its financial year, Royal Mail said strike action cost the business £70m, leading to an operating loss of £219m compared to a £235m profit last year. | During the first half of its financial year, Royal Mail said strike action cost the business £70m, leading to an operating loss of £219m compared to a £235m profit last year. |
| But Mr Ward responded: "This announcement is holding postal workers to ransom for taking legal industrial action against a business approach that is not in the interests of workers, customers or the future of Royal Mail. This is no way to build a company." | But Mr Ward responded: "This announcement is holding postal workers to ransom for taking legal industrial action against a business approach that is not in the interests of workers, customers or the future of Royal Mail. This is no way to build a company." |
| Royal Mail also revealed that it will have to enter talks with the union because, it said its legacy voluntary redundancy scheme, which offers up to two years' of pay, "is now unaffordable". | Royal Mail also revealed that it will have to enter talks with the union because, it said its legacy voluntary redundancy scheme, which offers up to two years' of pay, "is now unaffordable". |
| International Distributions Services, which is the parent company of Royal Mail, saw its share price tumble by 11% to 187p on Friday following the announcement. | |
| Royal Mail workers have staged a number of one-day strikes this year | Royal Mail workers have staged a number of one-day strikes this year |
| The company currently employs 140,000 people. It plans to cut between 5,000 and 6,000 jobs through redundancies. Headcount will be scaled back by a further 4,000 through not replacing people when they leave, cutting temporary staff and reducing overtime. | The company currently employs 140,000 people. It plans to cut between 5,000 and 6,000 jobs through redundancies. Headcount will be scaled back by a further 4,000 through not replacing people when they leave, cutting temporary staff and reducing overtime. |
| CWU members are striking over a pay deal Royal Mail offered earlier this year. This is made up of a 2% wage rise. as well as an additional 3.5% increase dependent on workers agreeing to certain conditions such as mandatory working on Sunday to deliver parcels. | CWU members are striking over a pay deal Royal Mail offered earlier this year. This is made up of a 2% wage rise. as well as an additional 3.5% increase dependent on workers agreeing to certain conditions such as mandatory working on Sunday to deliver parcels. |
| At the moment, Sunday working is voluntary. Royal Mail also wants employees to start later and finish later to accommodate online shopping habits, where people tend to order goods in the evening or late at night and want next-day delivery. | At the moment, Sunday working is voluntary. Royal Mail also wants employees to start later and finish later to accommodate online shopping habits, where people tend to order goods in the evening or late at night and want next-day delivery. |
| The CWU has rejected the offer, saying it failed to match rising inflation, which is currently running at a 40-year high of nearly 10%. | The CWU has rejected the offer, saying it failed to match rising inflation, which is currently running at a 40-year high of nearly 10%. |
| Royal Mail has been attempting to make the company a "parcels-led" business as the number of letters being sent through the post declines and more people shop online. | Royal Mail has been attempting to make the company a "parcels-led" business as the number of letters being sent through the post declines and more people shop online. |