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Royal Mail share price: Group faces legal action from drivers

Tsveta van Son
  • December 12th, 14:55
  • Last Updated: October 21st, 14:56

Royal Mail Group (LON:RMG) is facing a legal challenge, with four courier drivers having filed a legal action against the company over employment rights, Reuters has revealed. The news comes as the company recently reported progress in its ongoing talks with a trade union which opposes the postal operator’s plans to replace its defined benefits pension scheme with a cheaper alternative.

Royal Mail’s share price has advanced in London in today’s session, having added 0.45 percent to 444.21p as of 14:40 GMT, outperforming the mid-cap FTSE 250 index which has slipped marginally into the red and is currently 0.10 percent down at 20,043.82 points. The group’s shares are about two percent down this year.

Legal challenge

Law firm Leigh Day told Reuters in an email that claims four courier drivers, launched in the Employment Tribunal by GMB union, alleged a “failure by Royal Mail to pay the Parcelforce drivers the national minimum wage and holiday pay”.

The drivers also claim Royal Mail should give them “paternity pay, sick pay and employee protections such as protection from discrimination.” The law firm added that the couriers are classed as self-employed and not entitled to the same right as employees.

A Royal Mail spokesman meanwhile told the newswire that the company had been aware that a case had been filed, and did not comment on ongoing legal cases.

A first hearing is scheduled be held at the Employment Tribunal on February 16.

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 9, the consensus forecast amongst 17 polled investment analysts covering the postal operator advises investors to hold their position in the company. 

As of 14:56 GMT, Tuesday, 12 December, Royal Mail share price is 445.00p.

About the author

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Tsveta van Son
Tsveta van Son is part of Invezz’s journalist team. She has a BA degree in European Studies and a MA degree in Nordic Studies from Sofia University and has also attended the University of Iceland. While she covers a variety of investment news, she is particularly interested in developments in the field of renewable energy.

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