Long-running talks between Royal Mail and the Communication Workers Union are on the brink of collapse, with the company’s board thought to have threatened to put the loss-making postal service – the regulated UK entity that delivers to every address in the country – into a form of administration if a deal cannot be agreed.
A politically explosive move to declare the postal service insolvent is regarded by Royal Mail’s board as a last resort but has been raised with the union already.
“We are aware of the speculation,” said a Royal Mail spokesperson. “If we have anything to add to our previous financial statements, we have an obligation to do so.”
Royal Mail is on course to make operating losses of £350m-£400m this year,…
