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Royal Mail chief executive quits and CWU represented workers to receive COVID-19 lump sum payment

Frontline Royal Mail workers represented by the CWU union are to each receive a lump sum payment of up to £200 in recognition of the role they have been playing during the COVID-19 crisis.

The announcement on Friday came as the company's chief executive Rico Back quit with immediate effect. The group has reported a £22m slump in revenues, partly due to a sharp drop in letters being sent.

Mr Back had promised a £1.8bn turnaround plan to transform the company last year, however, this faced delays due to staff unrest and the uncertainty caused by the Coronavirus pandemic. On his departure, Mr Back said;

"It has been a privilege to lead a company that is so much a part of UK life at this crucial time in its history.

"I am proud of what I, together with our dedicated and loyal team, helped to build in Royal Mail and GLS.

"I look forward to seeing Royal Mail transform into a parcels-led, international delivery company, that continues to touch the lives of millions across the world."

Keith Williams is to become interim executive chairman of the group, and Stuart Simpson will be the chief executive until a permanent replacement can be appointed.

It has been reported that Mr Back will remain on the company's payroll until August 15, and will subsequently receive a £450,000 payment for "in lieu of notice".

Meanwhile, following discussions between the Royal Mail Group and the Communications and Workers' Union (CWU), frontline workers represented by the CWU in the group are to be paid a lump-sum payment of up to £200 'in recognition of the important role colleagues are playing during the Covid-19 crisis'.

The announcement was made in a joint statement between Royal Mail and the CWU, published on Facebook. The two sides have also committed to establishing a framework for talks 'in the very short term'.

Those in post between 16 March and 10 May and are represented by the CWU will be eligible for the payment. Those working part-time or on absence or unpaid leave will receive a pro-rata amount, and the amount will be paid by the end of next month.

 

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