Talks to resolve a longstanding dispute between Royal Mail and staff over pay and conditions have collapsed.
Royal Mail says it is “deeply concerned” by the talks, which ended without an agreement, and claimed it made “significant efforts” to reach an agreement.
The Communication Workers Union agreed to continue negotiations.
Royal Mail said it was “committed to reaching an agreement with the CWU” and said “not converting the company” was “not an option”.
The company said it has increased its salary offer, offering 10% over three years plus a one-time payment.
Royal Mail said it had also shifted to issues such as start times, employee profit shares and allowances. The CWU said: “Progress has been made in several areas and the union made it clear last night that we are ready to continue negotiations … to finalize an agreement.”
Royal Mail has warned that a return to industrial action by the CWU could result in Royal Mail going into administration.
The company fears further industrial action could result in large customers – such as retailers – being awarded millions of pounds in contracts.
The government would have to agree to a change in administration. It could mean Royal Mail’s entire business – including its universal service obligation to deliver to any address six days a week – and Parcel Force being declared insolvent.
According to the Royal Mail, the strikes have cost the company £200million in lost business and in covering for striking workers.
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