Royal Mail, Thomas Cook, Shell: Business news in brief on Wednesday May 25

Royal Mail avoids new pricing rules; Top model agencies accused of price fixing ; Thomas Cook cabin crew vote to strike

Ofcom said that Royal Mail’s obligation to deliver to every address in the UK, six days a week, for the same price was sustainable (PA)

Royal Mail avoids new pricing rules after Ofcom says service working well

Royal Mail has avoided having new pricing rules imposed on it, after the communication regulator said the universal post service was “working well” in its current form.

Ofcom has been reviewing the postal market amid concerns that the universal postal service was not financially sustainable. Shares in Royal Mail rose 1.8 per cent to 530p after Ofcom delivered the findings, making it one of the FTSE 100’s biggest risers on Wednesday morning

Top model agencies accused of price fixing by watchdog

The UK's five top model agencies have been accused of collusion and price fixing by the Competition and Markets Authority.

The Competition and Markets Authority alleged that between April 2013 and March 2015, agencies FM Models, Models 1, Premier, Storm and Viva swapped price information and “in some instances” agreed to fix them.

None of the agencies has so far responded to the accusations.

Thomas Cook cabin crew vote to strike in health and safety row

Cabin crew staff at travel operator Thomas Cook have voted to strike in a dispute over health and safety, the union Unite has said.

Thomas Cook staff have voted by 3-1 in favour of strike action in a row over changes to rest breaks. Members of the union backed walkouts by 74 per cent with a turnout of just over half.

The vote was called by Unite following concerns from employees over the proposed system, which would see crew given a 20 minute break every 12 hours instead of every six hours.

Shell to a cut a further 2,500 jobs

Royal Dutch Shell will cut 2,200 more jobs, taking the total tally of losses to 12,500 from 2015 to 2016 as the world’s second-biggest oil company continues to adjust to the slump in prices.

These reductions are in response to oil prices staying “lower for longer,” and as a result of the acquisition of BG Group earlier this year, said Paul Goodfellow, Shell’s vice president for the UK and Ireland.