Around 115,000 Royal Mail employees will participate in a 48-hour strike, organized by the Communication Workers Union (CWU), threatening to deal a serious blow to the upcoming Black Friday shopping season.
CWU Representatives have stressed that they intentionally chose to stage the strike now so that it coincides with the pre-Christmas shopping season. The strikes are also planned on November 30 and December 1 in order to affect Cyber Monday.
The walkout will likely affect online shops that work with Royal Mail. eBay's UK general manager Murray Lambell has warned that this strike may be “the nail in the coffin for many small businesses” amid “astronomical energy prices, rising interest rates, and the blowback from political unrest.” Analytical firm Springboard forecasts that visits to retail venues on Black Friday this year will be 12.8% higher than a year ago. Consumers are likely to prefer to physically visit stores instead of shopping online.
Royal Mail workers have already been striking for several months. They are discontent with their low wages in the wake of soaring inflation and in spite of the company's surging reported earnings. However, Royal Mail executives claim that 2022 hasn't been that good for the company. Royal Mail recorded losses of £219 million ($264 million) in the 26 weeks to September 25 against earnings of £235 million ($284 million) a year ago. According to the top brass, a large proportion of these losses can be attributed to the strikes. They also stated that they will have to fire thousands of workers in order to cut costs.
The strikes come as the UK has been plagued by inflation that's hit a 40-year high and a deepening recession. The Bank of England has already predicted that inflation could reach 13% next year. The economic crisis, which started during the COVID-19 pandemic, was aggravated by sanctions against Russia that backfired on Western economies, including Britain. The rising cost of living has already hit millions of UK households, prompting tens of thousands of rail and postal workers to go on strike.
According to research published by by the University of York, at least 45 million Britons could be pushed to the brink of fuel poverty by January 2023. Energy research firm Cornwall Insight forecasts that annual energy bills for British citizens might hit £4,200 ($5,070) in January.