Source A: Royal Mail
Royal Mail delivers letters and parcels to every address in the United Kingdom. It is part of International Distribution Services, which also owns the European parcel business GLS and which employed 153 552 people in 2024 and had revenue of £12 679 million. Around 85 000 of Royal Mail's people are postal delivery workers, and the business takes on about 16 000 extra temporary workers each year between late October and January to cope with the Christmas rush.
In June 2025 the company stopped being a public limited company listed on the stock market. EP Group, controlled by the Czech businessman Daniel Křetínský, completed a £3.6 billion takeover that the UK government had approved in December 2024 and that became unconditional on 30 April 2025.
Most of Royal Mail's people belong to the Communication Workers Union, and relations with that union have been difficult. Strikes ran from August to December 2022, and before the two sides returned to talks Royal Mail said it was losing up to £1 million a day. The dispute ended in July 2023 with a three-year deal worth a 10% pay increase and a £500 one-off payment, accepted by 76% of those who voted on a 67% turnout.
A second three-year deal followed on 3 July 2025: 4.2% in 2025, then increases linked to the Consumer Prices Index of at least 2% in 2026 and at least 2% in 2027, worth more than 8% in total and backdated to 1 April 2025. The company also promised no compulsory redundancies for the life of the deal.
Service quality remains a problem. In October 2025 the regulator Ofcom fined Royal Mail £21 million for missing its delivery targets in 2024/25, the third year in a row it had been fined. The fine was reduced from £30 million because the company admitted liability and settled. Royal Mail returned to profit in 2024/25, reporting £12 million.
Source: International Distribution Services, Ofcom and Communication Workers Union announcements, 2022 to 2026
Appendix A: Royal Mail and the Communication Workers Union, 2022 to 2025
Source: company and union announcements
Analyse one way in which the three-year pay deal agreed in July 2025 might affect Royal Mail's ability to compete on price with other parcel companies.
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