The week that was: 29 October 2010
Potter calls time on USPS career, UK government to double Post Office subsidy, and Royal Mail managers could strike over job cuts… Good afternoon, and welcome to ‘the week that was’. It has been a monumental seven days for industry news, and we are here to provide you with a round-up of the three main jaw-dropping stories. Hold tight.
There hasn’t been many days this year when USPS has been out of the headlines, and Tuesday was no different after postmaster general John Potter said he will retire later this year after 32 years with the company. Potter, also CEO of USPS, will step down on 3 December, to be replaced by current deputy postmaster general and COO Patrick Donahoe. Donahoe, who was chosen to succeed Potter by USPS governors, will become the 73rd postmaster general. Upon announcing his departure, Potter expressed his gratitude to his staff, announcing that USPS’s accomplishments were down to “thousands of employees who dedicated themselves to meeting customer needs in a rapidly changing technological and communications environment”. He said: “I fully appreciate their support in maintaining the tradition of trust that dates back to Benjamin Franklin and the founding of our nation. It is our people that define our organisation and it is their dedication and sense of purpose that drives our business.”
For more information on Donahue, click here. And for further reaction to the news, click here.
There was big news in the UK this week on two counts. First up, the UK government confirmed that it will double Post Office Ltd’s subsidy to £1.3bn. The money will aid modernisation and improve services, the Business Department said. It will also help to prevent a repeat of mass branch closures that sparked outrage during the previous Labour government’s tenure. Business secretary Vince Cable also confirmed the government’s desire to transform Post Office Ltd into a mutual body. He said: “The package averages out at over £330m a year – more than double the subsidy paid to the Post Office for the past two years. A large proportion of the last government’s funding was spent on closing post offices. Our strategy is completely different – it addresses the underlying economics of the network, while maintaining its size and reach.” Dave Smith, executive director at Post Office Ltd, said: “I am absolutely delighted that we have reached an agreement with the Government that allows us to modernise the Post Office ensuring we can continue to meet the changing needs of our customers and continue our commitment to communities across the UK.”
Staying in the UK, and it was revealed that thousands of Royal Mail managers are set to vote next month on whether they should strike over plans to cut jobs. It will be the first time since 1979 that managers will be balloted on industrial action. The ballot is due to start at the beginning of November. According to union Unite, Royal Mail intends to slash in the region of 1,500 management positions, in light of falling mail volumes and a drop in revenue. Up to 8,535 managers will vote, including staff from Royal Mail, Parcelforce and Post Office Ltd. Paul Reuter, national officer for Unite, said, “Managers are so concerned about their futures, that for the first time in over 30 years they will vote on industrial action. Unite will not allow managers to be forced out because of the poor decisions made at the very top of Royal Mail Group. If Royal Mail is allowed to push ahead with forced redundancies it will keep coming back for more, so Unite intends to stop Royal Mail in its tracks.”
And finally…
Don’t forget that World Mail & Express Americas Conference 2011 is heading to Mexico City in February. Post&Parcel will be there and we hope you are too. For more details, click here.
