Royal Mail (IDS) Shares Rallied 7.59% After CWU Talks Resumed

The Royal Mail share price, now known as International Distributions Services PLC (LON: IDS), has risen 7.59% over the past week after the Communication Workers Union (CWU) agreed to a new framework for talks with the company’s management team led by the board.

The new process for talks is still being facilitated by the UK’s Advisory, Conciliation and Arbitration Service (Acas) led by former Acas chair Sir Brendan Barber. The CWU and Royal Mail’s board agreed to resolve all the outstanding issues between them by Sunday, 12 March 2023.

The conciliatory tone adopted by the CWU and Royal Mail’s board was highly appreciated by investors leading to the rally in IDS shares. The long-running dispute between the two sides seems to end in the interests of the company’s future. 

Royal Mail still loses about £1 million daily. Many were concerned about the company’s future, given that the current losing streak is not sustainable over the long term. The optimism the CWU’s leadership expressed during a joint statement on Friday lends credibility to the ongoing talks. 

A long list of issues still has to be resolved between the CWU and Royal Mail, but the current talks indicate that finally, Royal Mail appears ready to budge, and so does the CWU. Therefore, there is significant hope that there will be no further strikes this year since the parcels and letters company may not survive if the industrial action continues. 

Investors are looking forward to the outcome of the ongoing talks between the CWU and Royal Mail’s board of directors on 12 March 2023. While many hope for a positive outcome, there are no guarantees given that previous Acas-facilitated talks did not yield any compromise. 

However, the situation at Royal Mail is dire. The company must resolve the dispute with its workers to focus on regaining the market share lost last year due to the industrial action. The company should change its work culture to compete effectively in the highly competitive parcel delivery business. 

*This is not investment advice. 

Royal Mail (LON: IDS) share price. 

The Royal Mail (LON: IDS) share price has risen 7.59% in the past week after CWU talks resumed.