Coronavirus: Royal Mail boss Rico Back in shock exit

Rico BackImage copyright Alamy

The boss of Royal Mail is leaving after lower than two years within the function amid reviews he has been operating the enterprise from his home in Switzerland.

Rico Back will step down as chief government with quick impact and Keith Williams, the previous boss of BA, will take over as government chairman.

Mr Back has reportedly been at his Lake Zurich home since simply after lockdown.

The Royal Mail mentioned he was “following government advice to work from home unless you cannot”.

Royal Mail has seen a pointy fall in letter volumes for the reason that coronavirus lockdown was launched within the UK on 23 March.

The firm mentioned that whereas there had been a “substantial switch from letters to parcels in the UK”, revenues throughout April fell £22m in comparison with the identical month final 12 months.

It has additionally confronted criticism from its personal employees, who mentioned final month that there was a scarcity of gloves, masks and hand sanitiser to guard them from contracting coronavirus.

Royal Mail mentioned it had invested in security tools and mentioned the prices of operating its UK postal service had risen by £40m “driven by overtime and agency resource costs due to high levels of absence, the introduction of social distancing measures and PPE”.

‘Crucial time’

Mr Back – who was given a £6m “golden hello” from Royal Mail when he took on the function in 2018 – has been placed on gardening go away till 15 August, throughout which he’ll obtain his pay and advantages.

He will then obtain 9 month-to-month funds totalling £480,000.

Royal Mail additionally mentioned it will present as much as £50,000 in direction of his authorized charges and a most £25,000 in direction of outplacement help.

Mr Back, who has been with the corporate for 30 years, mentioned: “It has been a privilege to lead a company that is so much a part of UK life at this crucial time in its history.”

Royal Mail additionally introduced that its government administrators won’t obtain bonuses for the 2019-20 monetary 12 months and mentioned £25m has been put aside for “cash awards for frontline staff, in recognition of their role during COVID-19”.

Image copyright AFP

Just previous to lockdown, postal staff had voted to go on strike in a row over pay and dealing circumstances however delayed the motion due to the pandemic.

Commenting on Mr Back’s departure, the Communication Workers’ Union mentioned: “The change of chief government by Royal Mail Group should now deliver a few whole change in technique and route.

“Postal workers have been outstanding during this pandemic and are ready to embrace innovation, new products and building on their role in every community in the UK.”