Royal Mail PLC (LSE:RMG) managers will go on strike later this month over claims that the company plans to cut pay by up to £7,000.
Trade union Unite said its members have voted to work-to-rule on Friday 15 July until the following Tuesday and then walk out from Wednesday 20 July until the Friday of that week.
“This business is awash with cash but it is putting profits and dividends for the few at the top ahead of its duties as a public service," said Unite general secretary Sharon Graham.
“There is not a single aspect of these cuts which is about improving customer service. They are being driven entirely by a culture of greed and profiteering which has seized a 500 year-old essential service, driving it close to ruin."
Royal Mail managers who are member of Unite voted by 86% for the industrial action, which the union said will mean deliveries will not be covered, that some key services like next day delivery and tracked items will be delayed, that postal staff may refuse to cross picket lines or work in unmanaged buildings when managers take their allotted rest days or when weekend volunteer operations are not covered, with managers also taking their breaks and not starting early or finishing late, and with not goodwill to work extra unpaid hours.
Royal Mail’s proposals are "worse than we first thought", Unite said, with a plan to cut 700 posts on top of the 1200 cuts last year, while managers who remain "face cuts to their salaries of up to £7000".
The union noted that last year, Royal Mail paid out £400mln to shareholders after recording a £311mln profit.
The union says that its members have "no other option but to take strike action" following months of consultation with Royal Mail.
The news distracted from the company's announcement that is had partnered in a prescription delivery service with Pharmacy2U, following a trial in certain regions.
Customers will need to download the Royal Mail Health app, and although prescription charges will still apply for those who pay, delivery charge is not included.
The NHS has stated that people are increasingly interested in having medicines delivered to their homes.
As postal delivery workers played a key role during the pandemic, Royal Mail recently launched its new health division.
A trial of same-day medicine delivery was carried out last year with Pharmacy2U.