Future focused

Today, we have shared important updates about: bonus arrangements; business performance; and senior management changes.

COVID-19 bonuses

• You are playing a key role during this crisis. You are delivering vital Government items relating to COVID-19, and playing an important part in the delivery and collection of home testing kits.
• To recognise this, we have set aside around £25 million in total to be shared between CWU-grade colleagues who, since March, have been working throughout the crisis. They will receive a cash recognition payment of up to £200 (before tax) in June. This payment will be pro-rata for part time working, absence and unpaid leave.
• We have also confirmed that no Executive Director bonuses will be paid for 2019-20.

April trading and business performance

• COVID-19 pandemic is a big problem for businesses. And we’re no exception.
• Driven by online shopping, UK parcel volumes are up 31 per cent. Revenue is up 20 per cent.
• But, UK addressed letter volumes are down 33 per cent (308 million items). Revenue has fallen 23 per cent.
• Overall, UK revenue was down £22 million in our April trading period alone.
• We have to take action quickly.
• In the coming weeks, we will be engaging with key stakeholders on a package of potential measures for the UK business.
• We will provide an update about the main measures at our Full Year Results 2019-20.

Changes to our senior management team

The Board and Rico Back have agreed he will step down as CEO with immediate effect and leave Royal Mail on 15 August.

Keith Williams will be interim Executive Chair of Royal Mail Group. To support Keith in his interim role, Stuart Simpson has been appointed interim CEO of Royal Mail (UKPIL). Mick Jeavons will be interim Group CFO.

Keith Williams, Executive Chair, Royal Mail plc, said: “Rico Back has made a significant contribution to the evolution of our business over his 20 years with us. On behalf of the Board, I would like to extend my thanks to Rico and wish him well in the future.”

Keith Williams will lead discussions with stakeholders about an accelerated pace of change across the business.

The full details are available on this Colleague Update.