Sep 17, 2017
Royal Mail poses mounting problems for chief executive
The chief executive of Royal Mail faces her biggest test since the privatisation of the postal operator four years ago, as a bitter industrial dispute over pensions and pay threatens to end in strike action. Royal Mail contributes about £400m into pension pots annually. In place of an existing defined benefit pension scheme, which provides a guaranteed income in retirement, Royal Mail is offering a different kind of DB scheme that instead gives employees a cash lump sum linked to the value of their contributions. If a full walkout does happen, it would be the first following Royal Mail's controversial flotation in 2014, with the potential to disrupt mail deliveries across the UK ahead of the Christmas period. "Over the past few years as Royal Mail became more efficient and flexible . . . it has been looking to win more business in this space, and has been successful," says Nick Pendleton, a former executive at the group.
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