Royal Mail (RMG) has gone a bit postal, so to speak. Its workers have voted to strike over pensions and pay, along with working hours and future job security. The company has responded by seeking a High Court injunction to stop the walk-out. Relations with staff were already frayed following news that the company would close its defined-benefit pension scheme from March next year. While Royal Mail has a pension surplus, it had calculated that its £400m annual contribution would soon surge to £1bn a year changes were not made.
IC TIP:
Sell
at
371p
Tip style
Sell
Risk rating
High
Timescale
Long Term
Bull points
Strong general logistics service
High dividend yield
Bear points
Employee strike
Huge pension scheme
Falling letter volumes
Challenging environment