Royal Mail warns of pay freeze

The Royal Mail today became the latest company to warn its workers that they face a pay freeze this year because of the recession.

The company wrote to trade unions saying it did not envisage being able to increase wage rates for any employees, including postal workers, managers and directors.

The company warned it was facing a "very tight financial position" and said its position on pay would affect the entire group.

The letter said: "Given the tough economic conditions and with the retail price index currently being negative, you will undoubtedly be aware that many other companies find themselves in a similar position of having difficulty in affording increases in pay."

The Royal Mail said the approach to pay will apply to all workers across the Post Office, Parcelforce and other parts of the business.

Unions were invited to a meeting with the Royal Mail to discuss the current "financial challenges" faced by the group.

The letter, sent by Jon Millidge, Royal Mail's human resources director, said the global economic turmoil had worsened the decline in postal markets in the UK and around the world.

The UK mail market is now declining at between 8 per cent to 10 per cent compared to a year ago and for every 1 per cent decline in volume, income is reduced by £7 million.

"The structural decline, in the face of competition from electronic communications, has accelerated significantly in recent months - a trend that is widely expected to continue," it said.

The Communication Workers Union condemned the plan to freeze pay as "appalling" and urged the company to reconsider.

Deputy general secretary Dave Ward said: "Postal workers are first class - they don't deserve this second-class treatment.

"The Royal Mail posted its best financial results for years in December and outperformed all of its financial targets.

"Royal Mail is weathering the recession well and has told staff the value of the company has significantly increased, effectively raising hopes for a decent pay rise.

"The people who run Royal Mail have again misjudged an important decision. For Britain's highest paid civil servant (chief executive Adam Crozier) to impose a pay freeze on workers who earn less than the UK average wage is outrageous. This inequality will lead to strife.

"Royal Mail is attacking the public's postal service by reducing hours and services - now this is a threefold attack on services, jobs and terms and conditions which makes industrial conflict inevitable."

Life and Style
food + drink
Arts and Entertainment
musicBand's first new record for 20 years has some tough acts to follow
Shoppers in Covent Garden, London, celebrate after they were the first to buy the iPhone 6, released yesterday
Liam Payne has attacked the media for reporting his tweet of support to Willie Robertson and the subsequent backlash from fans
peopleBut One Direction star insists he is not homophobic
Life and Style
healthFor Pure-O OCD sufferers this is a reality they live in
Arts and Entertainment
A bit rich: Maggie Smith in Downton Abbey
tvSeries 5 opening episode attracts lowest ratings since drama began
ebooksAn unforgettable anthology of contemporary reportage
Latest stories from i100
Have you tried new the Independent Digital Edition apps?
Independent Dating

By clicking 'Search' you
are agreeing to our
Terms of Use.

iJobs Job Widget
iJobs Money & Business

Quantitative Risk Manager

Up to £80000: Saxton Leigh: My client, a large commodities broker, is looking ...

COO / Chief Operating Officer

£80 - 100k + Bonus: Guru Careers: A COO / Chief Operating Officer is needed to...

Senior BA - Motor and Home Insurance

£400 - £450 Per Day: Clearwater People Solutions Ltd: **URGENT CONTRACT ROLE**...

Market Risk & Control Manager

Up to £100k or £450p/d: Saxton Leigh: My client is a leading commodities tradi...

Day In a Page

A roller-coaster tale from the 'voice of a generation'

Not That Kind of Girl:

A roller-coaster tale from 'voice of a generation' Lena Dunham
London is not bedlam or a cradle of vice. In fact it, as much as anywhere, deserves independence

London is not bedlam or a cradle of vice

In fact it, as much as anywhere, deserves independence
Vivienne Westwood 'didn’t want' relationship with Malcolm McLaren

Vivienne Westwood 'didn’t want' relationship with McLaren

Designer 'felt pressured' into going out with Sex Pistols manager
Jourdan Dunn: Model mother

Model mother

Jordan Dunn became one of the best-paid models in the world
Apple still coolest brand – despite U2 PR disaster

Apple still the coolest brand

Despite PR disaster of free U2 album
Scottish referendum: The Yes vote was the love that dared speak its name, but it was not to be

Despite the result, this is the end of the status quo

Boyd Tonkin on the fall-out from the Scottish referendum
Manolo Blahnik: The high priest of heels talks flats, Englishness, and why he loves Mary Beard

Manolo Blahnik: Flats, Englishness, and Mary Beard

The shoe designer who has been dubbed 'the patron saint of the stiletto'
The Beatles biographer reveals exclusive original manuscripts of some of the best pop songs ever written

Scrambled eggs and LSD

Behind The Beatles' lyrics - thanks to Hunter Davis's original manuscript copies
'Normcore' fashion: Blending in is the new standing out in latest catwalk non-trend

'Normcore': Blending in is the new standing out

Just when fashion was in grave danger of running out of trends, it only went and invented the non-trend. Rebecca Gonsalves investigates
Dance’s new leading ladies fight back: How female vocalists are now writing their own hits

New leading ladies of dance fight back

How female vocalists are now writing their own hits
Mystery of the Ground Zero wedding photo

A shot in the dark

Mystery of the wedding photo from Ground Zero
His life, the universe and everything

His life, the universe and everything

New biography sheds light on comic genius of Douglas Adams
Save us from small screen superheroes

Save us from small screen superheroes

Shows like Agents of S.H.I.E.L.D are little more than marketing tools
Reach for the skies

Reach for the skies

From pools to football pitches, rooftop living is looking up
These are the 12 best hotel spas in the UK

12 best hotel spas in the UK

Some hotels go all out on facilities; others stand out for the sheer quality of treatments