Royal Mail to present its case on quality of service failings at open meeting (UK)

Postcomm will hold an open meeting on 14 May at which Royal Mail will present its case on the reasons for its quality of service failures in the past year.

In June 2007, Postcomm agreed Royal Mail’s request to suspend – until the end of its current financial year – the payment of compensation to bulk mail customers, and to ensure that the company is not subject to a downward adjustment to its allowed revenues (known as the ‘C factor’), where industrial action has taken place and quality of service figures have dropped.

Postcomm agreed to the request because it wished to ensure that Royal Mail was not discouraged from taking the steps needed to modernise its business – such modernisation would be to the benefit of all mail users.

The regulator’s agreement to these suspensions was subject to it convening an open meeting at which Royal Mail would present the main points in its application. For it to be satisfied, Postcomm expects Royal Mail to be able to demonstrate that the industrial action arose as a result of carrying out its transformation plans and not for some other reason, and had a direct causal link to quality of service failures.

Major stakeholders in the postal market have been invited and offered the opportunity to ask any questions they have with regard to Royal Mail’s application; this will help ensure the regulator has appropriately considered the views of all interested parties before it makes its decision.

Postcomm will hold an open meeting on 14 May at which Royal Mail will present its case on the reasons for its quality of service failures in the past year.

In June 2007, Postcomm agreed Royal Mail’s request to suspend – until the end of its current financial year – the payment of compensation to bulk mail customers, and to ensure that the company is not subject to a downward adjustment to its allowed revenues (known as the ‘C factor’), where industrial action has taken place and quality of service figures have dropped.

Postcomm agreed to the request because it wished to ensure that Royal Mail was not discouraged from taking the steps needed to modernise its business – such modernisation would be to the benefit of all mail users.

The regulator’s agreement to these suspensions was subject to it convening an open meeting at which Royal Mail would present the main points in its application. For it to be satisfied, Postcomm expects Royal Mail to be able to demonstrate that the industrial action arose as a result of carrying out its transformation plans and not for some other reason, and had a direct causal link to quality of service failures.

Major stakeholders in the postal market have been invited and offered the opportunity to ask any questions they have with regard to Royal Mail’s application; this will help ensure the regulator has appropriately considered the views of all interested parties before it makes its decision.