• Text size      
  • Send this article to a friend
  • Print this article

Royal Mail chief 'should not have pay rise after job cuts'

The boss of the Royal Mail should forgo a lucrative planned pay rise if controversial proposals to lay off 1600 staff go ahead, Labour have warned.

Shadow minister for trade and investment Ian Murray said: "There can be no bumper pay increase for the chief executive of senior staff while people are losing their jobs."

The call came as it emerged that the plan, described as "ruthless" by unions, could trigger strike action.

The head of the Royal Mail, Moya Greene, is due to receive a large pay rise to her current salary, thought to be around £500,000.

But controversial new efficiency plans designed to save £50 million a year have provoked a furious row.

Royal Mail insists the cuts are necessary to allow it to compete with its rivals.

But the Unite union accused it of "ruthlessly sacrificing jobs" and warned it could face strikes. The job losses are thought to involve mainly operational and head office managerial positions, not frontline postal workers.

Royal Mail has also announced plans to create 300 new posts.

Coalition ministers have already been accused of selling it off on the cheap.

Brian Scott, national officer of Unite, said: "We do not believe that it's a coincidence that this announcement has been made just before the company prepares to announce its first full set of accounts since privatisation."

He said the union was demanding a commitment to no compulsory redundancies.

Contextual targeting label: 
Business

Commenting & Moderation

We moderate all comments on HeraldScotland on either a pre-moderated or post-moderated basis.
If you're a relatively new user then your comments will be reviewed before publication and if we know you well and trust you then your comments will be subject to moderation only if other users or the moderators believe you've broken the rules

Moderation is undertaken full-time 9am-6pm on weekdays, and on a part-time basis outwith those hours. Please be patient if your posts are not approved instantly.

221965