Members of parliament plan to investigate claims British postal monopoly Royal Mail has been exaggerating its losses.

The mail mammoth claims to be bleeding £0.75 million ($1.2m; €1.1m) a day. However, the Communications Workers Union – currently locked in a pay dispute with Royal Mail bosses –alleges it is underplaying its financial position to push the case for restructuring.

Now the House of Commons Trade and Industry Select Committee looks set to scrutinise the CWU claims. “There has to be a full investigation to find out what the truth of the matter is at Royal Mail,” declared committee member and Labour MP Lindsay Hoyle. “I’m positive the committee won’t shy away from having a full investigation into what is going on.”

Royal Mail has dismissed the allegations as “ludicrous”. But the probe comes at a sensitive time for the group, as it meets with CWU leaders in a last-ditch attempt to prevent a national postal strike over pay.

Data sourced from: Times Online (UK); additional content by WARC staff