Royal mail loses Amazon contract

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The contract is the latest in a number of important deals the postal group has lost in the past year as it faces increased competition from private delivery firms.

The announcement of the loss of a contract to deliver second class post for Amazon came ahead of crucial talks aimed at averting a national strike by postal workers in a dispute over pay and modernisation.

Officials from the Royal Mail and the Communication Workers Union will meet at the offices of the conciliation service Acas on Wednesday, although hopes of heading off a strike are not high.

Union leaders are due to meet on Thursday to review any progress in the talks and are expected to call the first national walkout in over a decade.