Royal Mail chief to step down after conflict with unions

Unions have accused Royal Mail chief Simon Thompson of trying to turn the postal service into a «giant economy» employer. Photo: Jeff Gilbert.

Royal Mail CEO prepares to step down amid supply scandal and after a year-long wage dispute with workers.

Simon Thompson, two years at the helm According to Sky News , Royal Mail is expected to retire within a few weeks.

During his tenure, Mr. Thompson has sought to modernize Royal Mail by refocusing the parcel business to help it compete with the likes of Amazon and Evry.

However, these changes were opposed by the Communications Workers Union (CWU ), accusing him of trying to turn Royal Mail into a «giant economy» employer.

His tenure was marred by a year of clashes with union leaders over pay and working conditions. CWU members went on strike for a total of 18 days in the second half of last year.

Royal Mail was also accused of failing to meet its universal service obligations during Mr. Thompson's tenure.

He also clashed with deputies. Mr Thompson, who earned just over £750,000 last year, was accused of «incompetence or ignorance» by Labor MP Darren Jones, head of the business select committee, in connection with the working conditions of postal staff.

< p >Sky News reports that the board of International Distributions Services (IDS), Royal Mail's parent company, has concluded that new leadership is needed. Mr. Thompson's departure could be announced as early as this week, the broadcaster said.

Royal Mail declined to comment.

The expected departure came shortly after Royal Mail entered into an agreement with striking workers to prevent further disruption.

The postal union agreed to a below-inflation wage increase in April. The CWU agreed to a 10% salary increase over three years, as well as a one-time bonus of £500.

Royal Mail employs approximately 140,000 people, making it one of the largest employers in the private sector Great Britain. .

The company plans to lay off 10,000 people as part of its cost-cutting plans, but has agreed that there will be no mandatory layoffs until April 2025.

Dave Ward, CWU general secretary, argued that a union strike prevented Royal Mail from becoming a «gig economy employer» in a letter to members that was signed with an anti-Thatcher slogan.

Royal Mail Group, as the company was called at the time, was privatized by a Conservative coalition government and Liberal Democrats in 2013. The then business secretary, Sir Vince Cable, said that private ownership was a necessary step for its modernization.