Royal mail freeze staff wages

Royal mail announced that their profits had doubled last year to £321 million today, despite a huge decrease in the numbers of letters being posted across Britain. This move has angered those groups who are fighting to stop a motion going through the houses of commons that will be decidede upon by the end of the month. This bill will see half of Royal mail being privatley owned with the sale of 49% of the business. 180 MPs have signed a petition to try and stop the motion from going through to keep Royal mail as a public company.

Union have also been in uproar as plans to freeze workers pay were attacked in the wake of this announcement. Royal mails excuse was the recent troubles in the drastic fall in mail as more people turn to email and the recession to freeze their employees wages. Comments have been made by groups who are opposed to this wage freeze saying ‘a pay freeze is just not defendable in this situation’. The amount of mail we are sending in the post in the UK increased to 6 percent, but there are fears that this could reach as high as 10% this year.

Also annoucned was the amount of money chief executive Adam Crozier has been making -£995,000, as opposed to the £3 million he made in the year before that. Though his wages were froze at £633,000, the rest of his payment came from a deferred bonus scheme he has in his contract. This makes Crozier Britain’s highest paid civil servant -which he has received much critism for.

Revenue was increased for Royal Mail due to the prices rises, which saw revenue come in at 10 billion pounds. Parcelforce’s profits increased by £4 million up to £12 million, and general logistics got a profit rise of £10 million. The other businesses received a operating profit of up to £86 million. If the privitisation in the ownership takes place, we would see the tax payer funding the companies pensions scheme.

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