Royal Mail's ex-CEO wades into dispute

Back was a controversial figure during his time at the helm
Back was a controversial figure during his time at the helm

Former Royal Mail CEO Rico Back has criticised the current management’s handling of the industrial dispute with CWU workers.

Back was a controversial figure during his tenure at Royal Mail, and stepped down in May 2020 following criticism over a £6m deal to buy out his old contract at subsidiary GLS, and his decision to remain in Switzerland during the height of the Covid-19 crisis. 

In an interview with the Sunday Times last weekend, Back criticised the current board and Royal Mail CEO Simon Thompson for wasting time and not executing effectively in its negotiations with the CWU. 

The CWU jumped on his remarks and tweeted: “Rico Back was no friend of the CWU when he was Royal Mail Group CEO. That is why his intervention today is so crucial.”

The Sunday Times piece said that Back also noted that Thompson, who took over as CEO two years ago from online grocer Ocado, had not run a large company before and did not know the logistics industry. “Both together is a toxic mixture,” Back said.

Negotiations between the CWU and Royal Mail appear to be stuck at an impasse. 

In its most recent update, on 25 December, Royal Mail stated: Following several months of talks between Royal Mail and Communication Workers Union, including ACAS facilitation, Royal Mail has shared a best and final offer for pay and change. 

“The revised offer includes extensive improvements that have been made during the negotiations with the CWU, including an enhanced pay deal of 9% over 18 months and a number of other concessions to terms and agreements. The offer is subject to agreeing a programme of change with the CWU.”

The latest strike action was on 24 December, with the CWU threatening more action in 2023. 

There was a huge backlog of mail and parcels prior to Christmas.