The Royal Mail share price, now known as International Distributions Services PLC (LON: IDS), has rallied 10.4% since the Communication Workers Union (CWU) cancelled its industrial action plans for November 2, 3, 4, 8, 9, and 10.
The strikes were cancelled after Royal Mail wrote to the workers’ union that it had not been duly notified of the strikes as required by the country’s labour laws. However, the short reprieve is about to end as the CWU plans to resume industrial action on 12 November 2022.
The rally in IDS shares was also driven by the excellent results reported by its rival Deutsche Post DHL, which expects to produce record results this year, driven by the higher prices charged for international freight and online shopping trends that have settled at a higher level.
Royal Mail, now officially known as International Distribution Systems (IDS), is modernising its operations and has said that it does not have the funds to implement the salary hikes demanded by its employees.
The parcels company incurred an operating loss of £219 million during its financial year’s first half compared to the £235 million profit booked in a similar period last year.
Royal Mail and the CWU were supposed to start negotiations mediated by the Advisory, Conciliation, and Arbitration Service (Acas) on Monday, 1 November 2022. Still, the two are yet to give an update on how the talks are progressing.
Meanwhile, we could see the recent gains made by IDS shares wiped out if the CWU goes ahead with its planned industrial action on Saturday, and investors should watch out for updates about the same over the next two days.
Royal Mail recently experienced a data breach on its Click and Drop service where some customers could see other customers’ data and had to suspend the service as they worked to fix the issue. Luckily, the problem was resolved a few hours later.
IDS will continue operating as royal Mail within its home market, the United Kingdom, and is currently replacing the stamps bearing the image of the immediate former Monarch, Queen Elizabeth II. The iconic stamp will likely be replaced with an image of King Charles III.
*This is not investment advice.
Royal Mail share price.
The Royal Mail share price has risen 10.43% in the past week after the CWU cancelled some strikes.