The Daily Telegraph

Royal Mail chief executive to leave after clash with unions

- By Riya Makwana

THE chief executive of Royal Mail is preparing to step down amid a row over deliveries and after a year-long clash with workers over pay.

Simon Thompson, who has spent two years at the helm of Royal Mail, is expected to step down within weeks, according to Sky News.

During his time in charge Mr Thompson has sought to modernise Royal Mail by refocusing the business towards parcels to help it compete with the likes of Amazon and Evri.

However, changes have been fiercely opposed by the Communicat­ion Workers Union (CWU), who have accused him of trying to turn Royal Mail into a “gig economy” employer.

His tenure has been marred by a year of clashes with union chiefs over pay and working conditions. Members of the CWU were on strike for 18 days during the second half of last year.

Royal Mail has been accused of failing to meet its universal service obligation under Mr Thompson’s tenure.

He has also clashed with MPS. Mr Thompson, who earned just over £750,000 last year, was accused of “incompeten­ce or cluelessne­ss” by the Labour MP Darren Jones, head of the business select committee, in a row over working conditions for postal staff. Sky News said the board of Internatio­nal Distributi­ons Services (IDS), the parent of Royal Mail, has concluded that new leadership is needed. Mr Thompson’s departure could be announced as soon as this week, the broadcaste­r said. Royal Mail declined to comment. The expected departure comes shortly after Royal Mail reached a deal with striking workers to prevent further disruption.

Postal unions accepted a below-inflation pay rise in April. The CWU agreed to a 10pc pay rise across three years, plus a £500 bonus lump sum. Royal Mail has a workforce of about 140,000 people, making it one of Britain’s biggest private-sector employers.

The company plans to make 10,000 redundanci­es as part of its cost-cutting plans but has agreed there will be no compulsory redundanci­es before April 2025.

Dave Ward, CWU’S general secretary, claimed that the union’s industrial action had prevented Royal Mail turning into a “gig economy employer” in a letter to members that was signed off with an anti-thatcherit­e slogan.

Royal Mail Group, as the company was called at the time, was privatised by the Conservati­ve-liberal Democrat coalition government in 2013.

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