Royal Mail parent sinks into red on costly UK strikes

London, May 18 (AFP/APP): International Distributions Services (IDS), parent of British postal group Royal Mail, said Thursday it had sunk into an annual loss following mass strike action at the former state monopoly.
IDS reported a loss after tax of £873 million ($1.1 billion) in the 12 months to the end of March against a net profit of £612 million in 2021/22.

Revenue dropped five percent to £12 billion.

“Quality of service has been significantly affected by industrial action and high levels of absence,” said Keith Williams, independent non-executive chair at IDS.

“I am sorry that we have not delivered the high standards of service our customers expect. Improving the quality of service is our top priority,” he added.

Shares in IDS traded down 0.7 percent in London midday deals.
The results update comes after Royal Mail last week confirmed the upcoming departure of its chief executive.

Simon Thompson will leave at the end of October, following criticism by UK lawmakers on the recent performance at Royal Mail.

The company had been blighted in its last financial year by industrial action, with thousands of workers protesting over wages failing to keep pace with soaring inflation.

Thompson axed 10,000 Royal Mail jobs last year, or about seven percent of its workforce, blaming the move partly on the strikes.

Royal Mail finally agreed a deal with union bosses in April, which includes a 10-percent pay rise for staff over three years.

Britain’s annual inflation rate remains stubbornly above 10 percent, prolonging a cost-of-living crisis for millions of people.

Set up more than 500 years ago, Royal Mail has experienced some of its most turbulent times during the past decade, particularly following its controversial privatisation in 2013.

The firm’s core letters business has been ravaged as consumers increasingly go online to communicate.

However, it enjoyed booming demand for parcel deliveries during Britain’s Covid lock-downs — and played a vital role delivering test kits and protective clothing in the pandemic.