Royal Mail strike may cause pre-Christmas panic

Amazon, the online retailer, is looking at alternative delivery services to Royal Mail, in a major blow to the postal service which is today (October 8) expected to announce a nationwide strike.

The online retailer is Royal Mail’s second largest customer and it is estimated that the contract for parcels weighing over 500 grams is worth at least £25m to the postal service.

An Amazon spokesman has denied media reports that it has cancelled any long-term contracts with Royal Mail. He adds however that with the possibility of strike action, “we have been working on contingency measures with our other carriers to ensure that we can continue to deliver”.

The Communication Workers Union is expected to confirm today that its 120,000 members will go on a nationwide strike in a protracted row over jobs, pay and services.

Large and small businesses, including customers of eBay, have already voiced their concern over the backlog of undelivered mail due to the regional strikes its employees have so far launched this year.

Concern is expected to heighten in the busy pre-Christmas season, particularly among online retailers, with more businesses expected to turn to alternative delivery services.

The Direct Marketing Association (DMA) has already called on the Government to intervene in the stand off between Royal Mail and its employees

The trade association has repeatedly warned of the damaging effects of strike action on UK businesses.

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