The DMA is calling for an urgent resolution to the postal dispute following a new strike ballot this week, calling on both sides to thrash out a deal to prevent what it describes as “yet another hardship for companies during extremely challenging economic times”.
More than 115,000 UK postal workers in the Communication Workers Union are already due to strike in a dispute over pay on August 26 and 31, and September 8 and 9.
The dispute has raged on for months, with Royal Mail offering workers a 2% rise backdated to April 2022, along with a further 3.5%, subject to a series of changes. However, the CWU has rejected this offer, calling it a “dramatic reduction” given the cost of living crisis and rising inflation, which this week hit a 40-year high of 10.1%.
Royal Mail insists it has made contingency plans but has issued a warning about potential disruption to services at a time when the direct mail market has only just recovered from the Covid meltdown.
Some businesses, including Moonpig, have already emailed regular customers to warn them of delays. Meanwhile the National Farmers Union has said the strike could hit UK poultry producers as they are legally bound to ensure time sensitive items such as salmonella samples reach their destination on time.
The market faces further disruption from Post Office workers, who will be taking strike action on August 26, 27 and 30, leading to many branch closures.
And earlier this week posties voted overwhelmingly for further industrial action in a separate dispute over working conditions, with almost 99% of CWU members backing fresh action on a 72% turnout.
CWU deputy general secretary Terry Pullinger said: “The ongoing attempts of Royal Mail Group to whittle away people’s hard-won working conditions will be met with fierce opposition. In these times, working people need more security on the job, not less, and we won’t be backing down until we secure an acceptable solution for our members.”
The latest ballot result means postal workers represented by the union will enter a “formal dispute” with Royal Mail, meaning the CWU is now legally mandated to declare further action.
A Royal Mail spokesperson said the firm has offered a 5.5% pay rise for CWU workers, its biggest increase in years, adding: “Instead of engaging meaningfully on change that will secure future jobs, the CWU has decided to ballot against change.
“Royal Mail can have a bright future, but we can’t achieve that by living in the past. Customers want more parcels, bigger parcels, delivered the next day, including Sundays, and more environmentally friendly options. We wanted to meet this week but were disappointed the CWU couldn’t make it – we hope to meet next week.”
In response, DMA chief executive Chris Combemale said: “The DMA urges the worker unions and Royal Mail to reach an agreement as soon as possible, to minimise the impact on affected businesses and consumers who rely on efficient services.
“Disruption to mail and parcel delivery creates yet another hardship for companies during extremely challenging economic times, so a long-lasting resolution must be found to preserve the trust of their customers.
“Royal Mail has worked hard to put contingency plans in place to keep some services operating, but we’d still advise businesses to be aware of reduced services on the strike dates.”
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