Talks between Royal Mail Group (LON:RMG) and its main union will rumble on over the Christmas break, City A.M. has reported. The parties are reportedly hopeful of breaking the deadlock and averting New Year strikes.
Royal Mail’s share price rose yesterday, adding 0.73 percent to close at 453.60p. The shares outperformed the mid-cap FTSE 250 index, which ended the session 0.36 percent higher at 20,422.73 points.
Talks to continue
City A.M. quoted a Royal Mail spokesman as saying yesterday that both sides had “continued to make progress in talks on pay, pensions and the other issues”. The privatised postal operator is continuing talks with the Communication Workers Union (CWU), which had threatened industrial action over the mid-cap group’s plans to replace its defined benefit pension scheme with a cheaper alternative.
“These talks will continue in the New Year as both parties seek to reach agreement,” the Royal Mail spokesman added, as quoted by City A.M. The FTSE 250 group updated the market on the talks earlier this month, saying that the parties had advanced the discussions. The talks followed a previous High Court ruling preventing a planned 48-hour walkout.
The newswire notes that the CWU had referenced talks ‘progress’ in a statement on social media, noting that the postal operator had proposed an ‘actual increase’ in basic pay and a shorter working week.
Analysts on Royal Mail
The 15 analysts offering 12-month price targets for Royal Mail for the Financial Times have a median target of 445.00p on the shares, with a high estimate of 590.00p and a low estimate of 300.00p. As of December 16, the consensus forecast amongst 17 polled investment analysts covering the privatised postal operator advises investors to hold their position in the company.