9th May 2023 17:10
(Alliance News) - The boss of Royal Mail is set to leave his post after lawmakers criticised the former state-monopoly's performance, which has been hit by mass strikes, Sky News reported Tuesday.
Chief Executive Simon Thompson is in advanced talks to leave one of Britain's largest private-sector companies after a turbulent two years at the helm, it said.
Royal Mail parent International Distributions Services PLC could confirm his departure this week, Sky added.
It comes after UK lawmakers in March concluded that Royal Mail has "systemically failed" to meet its postal-delivery requirement.
The company is obliged to deliver letters six days a week across Britain in a one-price-goes-anywhere postal service.
Set up more than 500 years ago, Royal Mail has experienced much turbulence since its privatisation in 2013.
It was boosted during the pandemic lockdowns by a high volume of parcel orders but this has since fallen sharply.
The company has meanwhile been blighted by recent industrial action with thousands of workers protesting over wages failing to keep pace with soaring inflation.
Royal Mail finally agreed a deal with union bosses in April, which includes a 10% pay rise for staff over three years.
Britain's annual inflation rate remains stubbornly above 10%, prolonging a cost-of-living crisis for millions of people.
International Distributions Services suffered an operating loss of GBP300 million in the nine months to December, after taking a vast hit from the strikes.
The London-listed group publishes annual results on May 18.
source: AFP
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