Balloting of Royal Mail workers over a proposed pay and conditions deal with the Communication Workers Union has been suspended, reviving tensions between management and staff, and sending the shares to a new six-month low.
“What has become clear is the environment we are attempting to deliver this agreement in remains toxic,” CWU wrote in a statement.
“Royal Mail Group has not stepped back from their attacks in the workplace.
“Unless Royal Mail Group openly accept that their culture of imposition and the ‘our business to run’ mantra must go – then the integrity of the negotiators' agreement will be irreparably damaged.”
The union explained that a vote on the deal would be rearranged once measures were agreed to instantly restore Royal Mail’s service quality and address the courier’s failures.
A “mass Zoom meeting” between union representatives and managers was also demanded, alongside the release of branch finishing times.
Under the prospective deal with Royal Mail parent International Distributions Services PLC (LSE:IDS), postal workers would receive a 10% pay rise, alongside a £500 lump sum payment, ending a months-long dispute that has cost Royal Mail over £1bn.
“We fully support this deal and hope that CWU members accept it in the forthcoming ballot,” a spokesperson for Royal Mail said.
“The need to change is critical so that we can improve our quality of service, deliver for our customers and get back to profitability.
“The sooner we can get a positive ballot result the sooner we can give our people the pay rise that we have agreed with the CWU and provide greater job security.”
The shares fell over 2% to 195.76p, down more than 20% over the past month and the lowest since last autumn.