Royal Mail emerging from the shadow of its pensions obligations

Post by **TrueBlueTerrier** » 07 Mar 2018, 14:49

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“We regard the recent broad set of agreements between the two parties as a landmark,” Barclays said

The recent agreement between Royal Mail PLC (LON:RMG) and the CWU union over pensions, has removed a toxic element from the stock, in Barclays' view.

The bank has kept its rating at 'overweight' and raised its forecasts following the recent agreement and the parcels and letters delivery giant's February 1 trading update.

“We regard the recent broad set of agreements between the two parties as a landmark,” Barclays said.

“To have closed, with a small surplus, one of the larger defined benefit pension schemes in the UK; to have replaced it with an affordable defined contribution scheme (possibly collective subject to government negotiation); and to have agreed on a pay deal to April 2020, without industrial action, is a remarkable and forward-thinking effort by all involved, in our view,” the bank said.

The bank cautions that it will still be necessary to see how the moves to a shorter working week and associated changes in working practices develop, but there is now a strong platform, in its view.

Decky Boy · Post by **Decky Boy** » 07 Mar 2018, 18:53

Exactly

Post by **Navalron** » 08 Mar 2018, 23:34

Yes its all about what the banks think now. Even reading the FT all their investment managers think how great a deal it is. That's when you know the working man/women has been f****d over.

BELIAL · Post by **BELIAL** » 08 Mar 2018, 23:55

Bit presumptuous ?

Done deal?

Fingers crossed ,we might not all be as thick as they think we are.