Royal Mail share price: Group to seek court injunction to prevent strike

on Oct 9, 2017
Updated: Mar 11, 2020

Royal Mail Group (LON:RMG) will seek an injunction with the High Court in an effort to prevent a strike, Reuters has reported. The news comes after the Communication Workers Union (CWU) recently served notice for a two-day walkout later this month, after failing to agree on pensions with the privatised postal operator.

Royal Mail’s share price has been steady in London in today’s session, having added 0.37 percent to 379.80p as of 13:22 BST, outperforming the broader UK market, with the mid-cap FTSE 250 index having fallen into the red and currently standing 0.28 percent lower at 20,110.91 points. The group’s shares have lost more than 21 percent of their value over the past year, and are down by some 17 percent in the year-to-date.

Reuters reported today that Royal Mail had said that it would seek an injunction with the High Court after the CWU failed to withdraw its intention to strike over a pensions dispute.

“CWU has declined to withdraw its notification,” the postal operator told the newswire in an email, adding that it will lodge an application with the High Court for an injunction to prevent industrial action so that the contractual external mediation process can be followed. The company added that a date for a hearing would be arranged with the High Court.

Royal Mail’s move comes after the company warned last week that it will use all legal options to fight a strike by the union. While the CWU is currently planning two days of industrial disruption at or after 11am on Thursday, October 19, to before 11am Saturday, October 21, the dispute with the postal operator could also threaten postal delays at Christmas if it continues. 

As of 13:32 BST, Monday, 09 October, Royal Mail share price is 380.00p.