, offered a fresh pay deal to the Communication Workers Union (CWU) in an apparent olive branch. The deal, however, comes with strings – and was immediately dismissed by union chiefs. The company has already announced that 10,000 jobs are set to go after eight days of strikes in the autumn. But it has now warned that unless staff accept a 9pc pay rise and new terms, including 24/7 parcel deliveries, mail centre closures and later finish times, the business faces a struggle to survive. Royal Mail's chief executive, Simon Thompson, said: 'Royal Mail made a loss of £219m in the first half of the year. This once again demonstrates that the need for change at Royal Mail is urgent.' The demand was described by one union insider as a 'all-out declaration of war' and sparked threats of rolling industrial action until Christmas, a situation sure to cause misery for British households. Union bosses are set to convene on Tuesday to decide how to respond formally. But in a sign of frayed tempers, a spokesman for the CWU said: 'These proposals are about dismantling a 500-year-old service and destroying the lives of those who serve it.' For all the public acrimony, however, the double-whammy of announcements on Monday has piled fresh pressure on the CWU at an opportune moment for Royal Mail. Simon Thompson, the company's UK boss, and chairman){kind=link}
Union faces fresh pressure amid prospect of tycoon takeover
To a cynical eye, the flurry of Royal Mail announcements on Monday might have looked coordinated.
With bosses at the postal service in a row with striking workers, the announcement that ministers were willing to let the 500-year old company be sold to a foreign buyer certainly rattled cages.
Grant Shapps, the new Business Secretary, has made clear he will not intervene if Daniel Kretinsky, the billionaire known as the “Czech Sphinx”, tries to increase his stake beyond 25pc – opening the door to a potential full-blown takeover.
His decision was announced just hours before Royal Mail, now known as International Distribution Services (IDS), offered a fresh pay deal to the Communication Workers Union (CWU) in an apparent olive branch.