16th Oct 2013 14:18
LONDON (Alliance News) - Royal Mail workers Wednesday voted to go on strike, just days after a stock market flotation that saw the value of the company soar.
Postal workers voted 4 to 1 in favor of strike action in a ballot that closed Wednesday, the CWU union said, meaning industrial action could start as soon as October 23.
The CWU balloted 100,000 of its members in protest at the privatisation and recent changes to salary and pensions.
Royal Mail shares have soared since the company listed last Friday. The stock is trading at 474 pence a share Wednesday afternoon, compared with the listing price of 330 pence, which was right at the top end of the listing price range.
Staff were allowed to apply for free shares worth up to GBP10,000 in the offering, meaning those that did apply are sitting on a large paper profit. However, this doesn't seem to have prevented a large number objecting to the deal. The CWU said 78% of those returning ballot papers had voted in favor of a strike, with 22% voting no. Turnout was 63%.
By Steve McGrath; [email protected]; @stevemcgrath1
Copyright 2013 Alliance News Limited. All Rights Reserved.
Related Shares:
RMG.L