Rejecting a 5.5 per cent pay offer, more than 115,000 workers at Britain's Royal Mail launched a four-day strike on Friday, with the postal group warning customers of significant disruption.
Employees across the UK workforce are demanding higher wages in the face of a cost-of-living crisis, with energy bills soaring and inflation projected to exceed 13 per cent.
"We are going to fight very hard here to get the pay rise our members deserve," said Dave Ward, the Communication Workers' Union general secretary.
Royal Mail says it has offered a 5.5 per cent pay rise for CWU-grade workers, its biggest increase in years. The protest action is being described as the UK's biggest strike of the summer so far.
The CWU said its members were taking the action for a “dignified, proper pay rise” after they voted in favour by 97.6 per cent in a ballot. The strike on Friday will be followed by further stoppages next Wednesday, and on September 8 and 9.
The union said management imposed a 2 per cent pay rise on employees, yet they were classified as key workers throughout the Covid-19 pandemic.
“In an economic climate where inflation looks set to soar to 18 per cent by January 2023, the imposition will lead to a dramatic reduction in workers’ living standards,” said a union spokesman.
Mr Ward said he expected a “tremendous outpouring of workers’ unity in villages, towns and cities across the country”.
“There can be no doubt that postal workers are completely united in their determination to secure the dignified, proper pay rise they deserve.
“Royal Mail’s leadership has lost the dressing room — and unless they make efforts to get real on discussing a pay rise that postal workers deserve, serious disruption will continue.”
CWU deputy general secretary Terry Pullinger said the Royal Mail Group had left workers with “no choice but to fight”.
Strikes in Britain — in pictures
Royal Mail said it has “well-developed contingency plans” to minimise disruption, focused on getting mail delivery back to normal as quickly as possible after the strike action.
The company said that on days when strike action is taking place, it would deliver as many Special Delivery and Tracked24 parcels as possible, prioritising Covid-19 test kits and medical prescriptions.
Customers are advised to post items as early as possible before the strike dates. Collections will be less frequent on days of protest action.
The union is also in dispute with Royal Mail over efficiency.
A company representative said: “We are losing £1 million [$1.1m] a day and we need to change what we are doing to fix the situation and protect jobs.
“This change is also needed to support the pay package we have offered to CWU grade colleagues, worth up to 5.5 per cent.
“This is the biggest increase we have offered for many years and the CWU have rejected it. This would add around £230m to Royal Mail’s annual people costs when the business is already loss-making.”
The union expects it to be the biggest strike of the summer, following strikes in other sectors such as rail, telecoms and the legal profession.
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Mercer, the investment consulting arm of US services company Marsh & McLennan, expects its wealth division to at least double its assets under management (AUM) in the Middle East as wealth in the region continues to grow despite economic headwinds, a company official said.
Mercer Wealth, which globally has $160 billion in AUM, plans to boost its AUM in the region to $2-$3bn in the next 2-3 years from the present $1bn, said Yasir AbuShaban, a Dubai-based principal with Mercer Wealth.
“Within the next two to three years, we are looking at reaching $2 to $3 billion as a conservative estimate and we do see an opportunity to do so,” said Mr AbuShaban.
Mercer does not directly make investments, but allocates clients’ money they have discretion to, to professional asset managers. They also provide advice to clients.
“We have buying power. We can negotiate on their (client’s) behalf with asset managers to provide them lower fees than they otherwise would have to get on their own,” he added.
Mercer Wealth’s clients include sovereign wealth funds, family offices, and insurance companies among others.
From its office in Dubai, Mercer also looks after Africa, India and Turkey, where they also see opportunity for growth.
Wealth creation in Middle East and Africa (MEA) grew 8.5 per cent to $8.1 trillion last year from $7.5tn in 2015, higher than last year’s global average of 6 per cent and the second-highest growth in a region after Asia-Pacific which grew 9.9 per cent, according to consultancy Boston Consulting Group (BCG). In the region, where wealth grew just 1.9 per cent in 2015 compared with 2014, a pickup in oil prices has helped in wealth generation.
BCG is forecasting MEA wealth will rise to $12tn by 2021, growing at an annual average of 8 per cent.
Drivers of wealth generation in the region will be split evenly between new wealth creation and growth of performance of existing assets, according to BCG.
Another general trend in the region is clients’ looking for a comprehensive approach to investing, according to Mr AbuShaban.
“Institutional investors or some of the families are seeing a slowdown in the available capital they have to invest and in that sense they are looking at optimizing the way they manage their portfolios and making sure they are not investing haphazardly and different parts of their investment are working together,” said Mr AbuShaban.
Some clients also have a higher appetite for risk, given the low interest-rate environment that does not provide enough yield for some institutional investors. These clients are keen to invest in illiquid assets, such as private equity and infrastructure.
“What we have seen is a desire for higher returns in what has been a low-return environment specifically in various fixed income or bonds,” he said.
“In this environment, we have seen a de facto increase in the risk that clients are taking in things like illiquid investments, private equity investments, infrastructure and private debt, those kind of investments were higher illiquidity results in incrementally higher returns.”
The Abu Dhabi Investment Authority, one of the largest sovereign wealth funds, said in its 2016 report that has gradually increased its exposure in direct private equity and private credit transactions, mainly in Asian markets and especially in China and India. The authority’s private equity department focused on structured equities owing to “their defensive characteristics.”
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