Are the unions wrecking Royal Mail?
Confirmation that there will be strike action by Royal Mail workers between now and Christmas has put the spotlight back on Royal Mail management and the unions. The company is already reeling from suggestions that Amazon is set to walk away from one contract worth £25 million year but today sees news that Argos and eBay may also be reviewing their position. Slowly but surely Royal Mail is losing significant custom at a time when the business is literally crying out for extra capital.
Whether the suggestion that Argos and eBay could also walk away from the Royal Mail operation will be enough to get unions and management back around the negotiating table remains to be seen because ultimately they have been at loggerheads for some time. The unions claim that Royal Mail management has already pushed through various changes without consulting them whereby Royal Mail is suggesting that these changes are needed to save the business.
So far the UK government has taken a back seat and refused to become involved in the fallout, but ultimately pressure is building on the government to take a lead. A significant deterioration in the postal service in the short term will starve many businesses of vital cash flow and could push many operations under.
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