UK union accuses Royal Mail of putting profit targets ahead of improvements

Union leaders accused Royal Mail management of putting financial targets ahead of service improvements as the company attempted to turn its fortunes around.

The Communication Workers Union (CWU) told the Trade and Industry select committee a massive cost cutting programme to reduce losses was being implemented with no thought of the long term implications.

CWU general secretary Billy Hayes told MPs low wages, poor working conditions and the physical demands of carrying extra mail after the introduction of the single delivery had led to low morale among staff.

Hayes’ deputy, David Ward, said the Royal mail renewal programme was ‘focusing on finances’ and not looking at service improvements.

Royal Mail lost 611 mln stg before tax in the year to March 2003 compared with a pre-tax profit of 608 mln in 1999.

This has led to widespread job cuts and the decision to remove the second daily postal delivery.

Ward said the abolition of the second delivery had caused problems, particularly for small businesses.

‘There has been too much attention on that (finances) and not enough on the single delivery itself,’ he said.

He said local mail managers were not being given enough flexibility to implement the programme with too much emphasis on cost cutting.

Royal Mail chairman Allan Leighton had earlier admitted to the committee that many people were receiving their post later so they thought they were getting a worse service.

Royal Mail has faced increasing criticism after a report from consumer group Postwatch found 14 mln letters are mis-delivered by the company every year.

This was exacerbated by a Channel 4 documentary that accused postal workers of stealing money and other items from letters.

Both the CWU and Royal Mail chief executive stressed that the documentary was not an accurate portrayal of the majority of postal workers, but they did admit that the use of large numbers of casual staff had created opportunities for theft.

Crozier told the MPs the company prosecuted 300 of its workers last year and was considering criminal checks on its staff as part of a ‘zero tolerance’ approach to theft.