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Royal Mail boss Simon Thompson to step down
https://www.whatjobs.com/news/united-kingdom/uk-business-news/royal-mail-boss-simon-thompson-to-step-down
By Nagasunder in UK Business News, posted May 15, 2023
Royal Mail CEO Simon Thompson is set to step down from his position after a difficult two years in charge.
The company's board is in the advanced stages of appointing a new chief executive, and Mr. Thompson will remain in his role until the end of October.
The decision was reportedly influenced by a deal struck between Royal Mail and the Communication Workers Union (CWU), which could potentially end a long-running dispute.
Read More: Royal Mail chief in talks over standing down after strikes and bitter union row
Mr. Thompson had been accused of misleading MPs after he denied that Royal Mail tracked workers' productivity.
This allegation had put him under significant pressure, and he has also faced criticism over his handling of a pay dispute that had become increasingly confrontational.
Reports suggest he had become increasingly disillusioned during the strike action by members of the CWU.
Read More: Royal Mail and Communication Workers Union finally reach deal on pay
Royal Mail's parent company, International Distributions Services, is believed to have wanted fresh leadership at the firm following the dispute over pay and conditions.
The company had warned that further industrial action could lead to it going bust, which had already cost it £200m.
Mr. Thompson's predecessor, Rico Back, was ousted after he promised to transform the service but ended up at loggerheads with unions.
Read More: Royal Mail staff could stage new strikes if talks on pay collapse
He was also criticized for commuting from his home in Switzerland. The company will soon be appointing its third boss in five years.
Whoever takes over as CEO will have to improve the relationship between Royal Mail and its workforce and push through significant changes to modernize the business and make it more efficient.
The CWU, which had called for Mr. Thompson to go, said that he was "one of the key individuals responsible for the financial crisis that Royal Mail Group has created over the course of the last year." It has called for further changes in the leadership team.
Read More: Rail staff, nurses and frontline Royal Mail workers to hold more strikes
Mr. Thompson's position within the company was weakened after he was recalled by MPs to give evidence to an inquiry in January.
This followed hundreds of complaints about the accuracy of an earlier testimony, in which he denied that the firm tracked workers' productivity through their handheld computers. MPs also questioned his denial that Royal Mail prioritized parcels over letters.
At the beginning of the year, Royal Mail was hit by a ransomware attack linked to Russian criminals, which disrupted overseas mail. It took more than a month for international mail services to resume.
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In his statement announcing his departure, Mr. Thompson said he had been "incredibly proud to lead Royal Mail during this crucial period."
He said the firm "now has a chance to compete and grow" after changes to the business and the agreement with the union. "It is now the right time to hand over to a new chief executive," he added.
Board chairman Keith Williams thanked Mr. Thompson for his significant contribution to the firm. Given the structural challenges facing Royal Mail, it has been suggested that the job of the CEO has become mission impossible.
However, the company will be hoping that a new leader can improve its relationship with its workforce and implement the necessary changes to ensure its future success.
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