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Royal Mail invokes Agenda for Growth: all legal options will be used

Posted: 6th October 2017

Royal Mail (RMG.L) has today received confirmation from the CWU that it is planning two days of industrial disruption at or after 11am on Thursday 19 October to before 11am Saturday 21 October 2017. This follows the CWU’s announcement on 3 October of its ballot result in favour of industrial action.

Royal Mail is very disappointed by this announcement from the CWU. The Company is committed to further talks as a matter of urgency to reach agreement with the CWU. There are no grounds for industrial action. We want to reach agreement.

Royal Mail will be writing to the CWU invoking the external mediation process under the dispute resolution procedures in the Agenda for Growth. These legally-binding dispute resolution procedures were set up as a vehicle to resolve industrial disputes. We wish to use them to do just that. Royal Mail will use all legal options at its disposal, including applying to the High Court for an injunction to prevent industrial action.

In 2013, Royal Mail and the CWU committed to the Agenda for Growth – a legally binding agreement. This agreement contains contractual dispute resolution procedures. Both sides are required to follow them once instigated. They escalate to independent external mediation, which we expect will take close to Christmas to be completed, and may be longer.

External mediation as set out in the Agenda for Growth agreement has not yet taken place. A clear mechanism for instituting these procedures is set out in writing in the Agenda for Growth. It includes: a) Formal notice of a referral to external mediation from one party to the other; b) The appointment of an external mediator through the mutually agreed process and; c) A comprehensive mediation process which includes the mediator preparing a detailed report, including recommendations for both parties. None of these processes have happened yet.

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