Royal Mail investors to meet union bosses: Attempts to negotiate end to bitter industrial dispute that has paralysed business

[TrueBlueTerrier]

https://www.msn.com/en-gb/money/compani ... r-AA16zUVV

Royal Mail investors will meet with trade union bosses next week to try to negotiate an end to the bitter industrial dispute that has paralysed the business.

The Mail understands that on Monday afternoon several major shareholders in Royal Mail's parent company International Distributions Services (IDS) will meet in London with Dave Ward, general secretary of the Communication Workers Union (CWU), to try to hash out a solution.

Topics on the agenda will include alternative ways of running the business as well as growing the firm in new sectors and addressing shareholder worries over the union's demands.

One person who will not be at the meeting is Royal Mail boss Simon Thompson, who was castigated by MPs on the business committee earlier this week where chairman Darren Jones said his answers raised 'grave concerns' over the running of the group.

Another matter looming over the talks will be Thompson's future as chief executive. It follows a chaotic few months for Royal Mail as strikes crippled the company over the crucial Christmas period and a Russian cyber-attack knocked out its overseas delivery operations.

It is not yet known exactly which IDS shareholders will be at the meeting with Ward, but it is understood that several major investors who initially opposed the CWU are now trying to engage with the union after Thompson's lacklustre committee appearance on Monday.

One notable absence will be Daniel Kretinsky, the Czech billionaire and IDS's largest shareholder, who owns just over 23 per cent of the business through his vehicle Vesa Equity. Kretinsky, dubbed the Czech Sphinx for his inscrutable approach to investing, is thought to still be supporting Thompson, with rumours he could be advising the embattled chief executive to resolve the crises facing the business.

But the prospect of Thompson being ousted has sparked speculation around his possible replacement.

Martin Seidenberg, the head of IDS's more successful international delivery arm GLS, is thought to be a viable candidate, while there is also speculation that Thompson's predecessor Rico Back could make a return to the top job. Back waded into the row at Royal Mail earlier this month, criticising the company's board for its 'confrontational' approach to the strikes.

Shareholder concerns have steadily mounted as Royal Mail's losses ballooned following the disruption, with market analysts pencilling in a loss of nearly £750m for the year to the end of March.

That represents more than £2m per day and follows a £416m profit last year.

So large are Royal Mail's projected losses that it would push IDS to a £290m loss for the year from a £662m profit in 2022.

The eye-watering sum also stands in stark contrast to GLS, which is predicted to rake in a profit this year of £317m.

IDS shares rose 3.4 per cent to 221.3p yesterday.

[TrueBlueTerrier]

But the prospect of Thompson being ousted has sparked speculation around his possible replacement.

Interesting......

[pieoftheday]

Beginning of the end for Simon?

[enskied]

Beginning of the end for Simon?

I think Simon is/was going at the end of the dispute anyway. This may speed his departure hopefully. Then we still have a battle to fight.
Whomever is CEO they want to destroy our terms and conditions.

[WalkerX]

Talking to the organ grinder rather than the monkey at last. It doesn`t matter who the monkey is. The agenda will remain the same.

[john0b]

Seen as though it’s Saturday afternoon feel a footy chant, coming on
We want Rico back
We want Rico back

[SSkUNkY]

Thompson is, and always has been, nothing more than the useful idiot.

[Barnacle]

Be surprised if Thompson survives the year.

[Mr Rush]

We want Rico back

"From Lake Geneva to the Finland Station"

Just remember how people felt about Simon initially, after Rico was ousted. The approach might change but the goal will be the same.

[stevejm]

We want Rico back

"From Lake Geneva to the Finland Station"

Just remember how people felt about Simon initially, after Rico was ousted. The approach might change but the goal will be the same.

The speed of change may slow, but the goal will be the same.
Kick the bucket down the street. Come to an agreement to get the share price up and dividends rolling in again and then in late 2024 another big push when Labour are in and politics is more amenable to splitting the company / reducing the USO / renationalisation

[DirtyHarry]

I have no faith in anything coming good of meeting with those people. None.
By their very nature, however much they put in, they will want to take out more.
And, unless by some fluke they happen to be the best minds in modern business, they won't be much of an upgrade on the likes of Thompson and his gang.

[guardianangel]

They better sort it out quickly because the CWU will get another massive yes vote ,most of the guys i speak to would rather strike and bring the company to its knees than except the conditions they want us to work under.

[Barnacle]

They better sort it out quickly because the CWU will get another massive yes vote ,most of the guys i speak to would rather strike and bring the company to its knees than except the conditions they want us to work under.

After Thompson’s train wreck of a performance at the committee, voting NO would be ludicrous.

It has to be YES. We continue.

[rambo1]

I have no faith in anything coming good of meeting with those people. None.
By their very nature, however much they put in, they will want to take out more.
And, unless by some fluke they happen to be the best minds in modern business, they won't be much of an upgrade on the likes of Thompson and his gang.

That's how capitalism works. You risk your money, of course you want more out than you put in. Also for shareholders to get more out than they put in, the business has to be successful. At the moment it is not. Therefore why do you think people with money invested will want to keep things the way they are at the moment? I'm afraid you and I don't have the taxpayers paying our wages anymore so to keep your money coming in the business will have to be successful.

[guardianangel]

They better sort it out quickly because the CWU will get another massive yes vote ,most of the guys i speak to would rather strike and bring the company to its knees than except the conditions they want us to work under.

After Thompson’s train wreck of a performance at the committee, voting NO would be ludicrous.

It has to be YES. We continue.