Royal Mail PLC (LSE:RMG) will be impacted by further walkouts on Thursday and Friday, which its workers have declared the “biggest strike in the UK since 2009”.
More than 115,000 members of the Communication Workers Union (CWU) took place in the first round of strikes last month, as part of an ongoing dispute over pay.
Four Royal Mail strikes were scheduled in total, with the first two falling on Friday, August 26 and Wednesday, August 31, and now the final two are taking place this week on consecutive days, Thursday, September 8 and Friday September 9.
Despite “well-developed contingency plans”, Royal Mail has acknowledged that these “cannot fully replace the daily efforts of its frontline workforce”, with major disruption to postal services inevitable on strike dates.
The most significant effect is that Royal Mail will not be delivering any letters on these days, except for those sent by Special Delivery. Special Delivery parcels are also being prioritised, although Royal Mail added: “However, we cannot guarantee delivery of all items by 9am or 1pm next day.
“We will therefore suspend the next day guarantee for items sent the day before, during strike action and until our services are back to normal. Customers will not be able to claim compensation for items which are delayed during this period," the mail delivery group said.
Any items posted in postboxes or Post Offices the day before, during or following strike dates are likely to be subject to delays. The majority of Post Offices are expected to be open on the dates walkouts are talking place, although a small number will be affected by the CWU action.
Royal Mail has pledged to increase its network capacity and devote additional resources to ensure services return to normal following strike days.
Pay rise of 5.5% offer rejected
The strikes come after the CWU rejected a pay rise offer from Royal Mail “worth up to 5.5%” after three months of talks. The union is demanding a rise more in line with inflation, which is currently at 9.4% and which could reach 13% later this year.
In a statement announcing the strikes on August 9, Dave Ward, CWU general secretary, said: “Nobody takes the decision to strike lightly, but postal workers are being pushed to the brink. There can be no doubt that postal workers are completely united in their determination to secure the dignified, proper pay rise they deserve.”
He added: “The CWU’s message to Royal Mail’s leadership is simple – there will be serious disruption until you get real on pay."
Ricky McAulay, operations director at Royal Mail, last month accused the union of failing to engage in “any meaningful discussion” after months of talks.
“In a business that is currently losing £1m a day, we can only fund this offer by agreeing the changes that will pay for it," McAulay told the BBC.