New Czech Royal Mail Owner Calls For Unity As Pay Deal Struck With Unions

The newly appointed owner of Royal Mail, Czech billionaire Daniel Kretinsky, has issued a rallying call for workforce unity following his £3.6 billion takeover of the postal service. His message coincides with a crucial breakthrough in negotiations, as the organisation reaches a pay agreement with trade unions.

Kretinsky, who acquired International Distribution Services (IDS) through his EP Group conglomerate, emphasised the vital importance of collaborative relationships with trade unions in an internal staff memo. The move marks a significant shift from previous management struggles, which saw the postal service hemorrhaging over £1 million daily amid 18 days of industrial action.

The landmark deal, secured at 370p per share, involved careful negotiations with government ministers, resulting in the establishment of a golden share arrangement. This strategic move has garnered support from the Communication Workers Union (CWU), whose general secretary Dave Ward has expressed optimism about the new direction.

The leadership transformation continues with Alistair Cochrane’s promotion to chief executive, replacing Emma Gilthorpe. The board has been strengthened by the addition of Jiri Zrust, a senior logistics executive from Trafigura, while former Conservative trade minister Greg Hands joins as a strategic adviser to EP Group.

Kretinsky’s vision extends beyond immediate stabilisation, with the billionaire emphasising a long-term commitment to Royal Mail’s success. The three-year pay deal offers enhanced job security, demonstrating EP Group’s dedication to rebuilding trust and operational efficiency.

The Czech investor’s portfolio, built on European energy assets, spans diverse sectors including food, media, logistics, and sports, with notable investments in J Sainsbury and West Ham United. Industry observers note particular interest in expanding GLS, IDS’s profitable European and North American parcel business, signalling ambitious growth plans under the new ownership.