'Intensive and complex negotiations'

CWU negotiations continue, EP Group appoints new UK advisor

More than half (56%) of Royal Mail’s revenues for 2021/22 were made up of package deliveries
Negotiations are due to finish this week (5 June)

Negotiations between the Communication Workers’ Union (CWU) and Royal Mail over pay, working conditions and the Universal Service Obligation (USO) have entered their sixth week ahead of Royal Mail’s first board meeting under new owner EP Group on 9 June.

The “intensive and complex negotiations” cover a number of commitments by EP, including a long-term pay deal, a roadmap to equalising new entrants’ pay and conditions, reducing reliance on agency staff, reviewing overtime, improving sick pay, and introducing a performance incentive scheme and new performance review processes, alongside the review of the USO.

“There have also been helpful discussions with EP Group on these critical issues,” said Martin Walsh, deputy general secretary of the CWU last Friday (30 May).

“All parties have now committed to doing everything possible to reach a complete agreement by Thursday, 5 June 2025.

“Negotiations will continue over the weekend and throughout next week to try to reach an agreement that can be presented to the first board meeting under the ownership of EP on 9 June.”

In late May, Ofcom opened an investigation into Royal Mail’s compliance with regulatory obligations, after the company posted its annual delivery performance results on 23 May. 

Among other targets, Royal Mail must deliver 93% of First Class mail within one working day of collection; and deliver 98.5% of Second Class mail within three working days of collection.

But the postal operator said it did not meet the above performance targets in 2024/25, as it delivered 76.5% of First Class mail within one working day; and delivered 92.2% of Second Class mail within three working days.

Ofcrom will now investigate whether Royal Mail has failed its obligations. It may then consider a financial penalty.

EP Group has meanwhile appointed a new strategic advisor to its board, to help expand the company’s portfolio across the UK and Germany.

Greg Hands, a former minister of state for international trade, minister for energy, clean growth and climate change, and chief secretary to the Treasury, will provide “strategic counsel” to EP Group’s executive leadership, reporting directly to chairman and CEO Daniel Křetínský.

Hands will be primarily based in the UK, and will focus largely on regulatory and market developments in both UK and Germany.

EP Group, which originally focused on energy and infrastructure, has diversified to include logistics, food wholesale, retail, media and e-commerce. Companies in which it is the controlling shareholder generate around €80bn (£67.5bn) in revenues and an annual EBITDA of around €8bn.

Křetínský said the team was “delighted” to welcome Hands into the fold.

“His deep understanding of the UK and German business and energy landscapes, coupled with his extensive experience in government and international trade, will be invaluable as we navigate the evolving sectors in these key markets. 

“Greg has unique capabilities for the job, including fluency in German and good Czech, and understands many of our markets very well.”

Hands added: “I am honoured to join EP Group as strategic adviser for the UK and Germany. I have known Daniel Křetínský for a long time, and I know that EP Group has a strong track record in energy and infrastructure. 

“I look forward to contributing to its continued growth and commitment to energy security and sustainable energy solutions in these regions.”