Royal Mail Group’s (LON:RMG) main union says confidence is growing that a deal could be struck to avoid industrial action, City A.M. reports. The news follows a fresh round of talks between the privatised postal operator and the Communication Workers Union (CWU) which have been at odds over the group’s plans to replace its defined benefit pension scheme with a cheaper alternative.
Royal Mail’s share price rose on Friday, adding 0.35 percent to close at 455.80p. The group’s shares have lost less than one percent of their value over the past year.
City A.M. reported on Friday that the CWU had said in a short update to members that further ground had been made during highly secretive negotiations with Royal Mail leaders.
“Our confidence grows that we will reach a negotiators agreement which will address all of the issues we have campaigned on,” the union said in the statement. The newswire notes that the CWU negotiators are set to provide an update to the union’s executive committee on Tuesday, with further details cascaded down to the postal giant’s rank and file shortly afterwards.
The news comes after it recently emerged that the ongoing talks would rumble on over the Christmas break, with the parties reportedly hopeful of breaking the deadlock and averting New Year strikes. The talks followed a previous High Court ruling preventing a planned 48-hour walkout.
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, with a high estimate of 590.00p and a low estimate of 300.00p. As of January 6, the consensus forecast amongst 17 polled investment analysts covering the blue-chip group advises investors to hold their position in the company.