The week that was: 16 April 2010
CWU pushes for deal, USPS struggles, and Australia Post begins price increase process… Welcome to Post&Parcel’s weekly news round-up, covering the key stories from the mail and express industry over the past seven days. In the UK, Communication Workers Union (CWU) deputy general secretary Dave Ward has urged postal workers to vote in favour of the Royal Mail agreement. The Business Transformation – 2010 and Beyond consultative ballot opened last week. Explaining the issues at stake, Ward said: “Our members have been facing unprecedented change for a number of years within the business and this agreement deals with that change. And we now have clear commitments from the company that the union will be fully involved in all areas of change and modernisation.” Signing off, Ward quipped: “Voting no to any agreement is not an alternative to change – I urge our members to vote and to vote YES for a fresh start.”
The storm that has been building upon the horizon for many years is now descending upon USPS HQ at a fast pace. Postmaster general John Potter told authorities that the company may run out of cash as early as October unless Congress drops a requirement to prefund health benefits for retirees. Potter made the admission whilst he was asking the House Oversight and Government Reform Committee to let USPS cut Saturday delivery and stop paying health costs in advance. He was quoted in Business Week as saying: “Today we stand on the brink of financial insolvency. If Congress is unable to act this fiscal year on broader legislation, our projections show that we will risk running out of cash the first month of fiscal year 2011.” Worrying times.
The leading executives at Australia Post have submitted a proposal to the Australian Competition and Consumer Commission to raise the standard postage rate by five cents from 28 June. General manager of mail and networks at Australia Post, Jim Marshall, said: “While no-one likes a price rise, we are only seeking an increase in order to cover the cost of providing access to letter services for all Australians – no matter where they live. Rapid growth in areas such as western Sydney, south-east Melbourne, south-east Queensland and parts of Western Australia will add 2.5m new addresses to Australia Post’s delivery network over the next decade. The projected growth in homes and business addresses over the coming decade will be equivalent to adding another Queensland or nearly four Adelaides to our network.”
And finally…
The Mail & Express Delivery Show (MEDS) takes place on Wednesday 21 April in London. The industry-leading event will take place at the Novotel London West, Hammersmith. A unique forum that brings together operators, industry suppliers and high volume generators of post and parcels; MEDS tackles the key issues in the market, with a high-profile range of industry speakers and an accompanying showcase exhibition.
For more details, or to register, click here
