The week that was: 21 September 2012

Summing up the biggest stories of the week on Post&Parcel, including Brazil’s latest postal strike, FedEx struggles and Yodel’s change of leadership.

Brazil Post suffers strike action, wins partial injunction

Postal workers in 23 regions of Brazil went on strike this week, but Brazil Post won a partial injunction from the Superior Labour Court (TST).

The injunction requires national union group Fentect to ensure that at least 40% of workers in every division and unit in Brazil Post report to work.

Meanwhile, after conciliation talks between the Post and the unions failed to secure a new pay deal for 120,000 postal workers, the TST decided to send the issue to trial.

FedEx to make cuts in express, hike prices 5.9%

FedEx Corp blamed politicians in the US and Europe for underlying economic problems that have hit its profits, particularly on the express side of the business.

As the integrator revealed first quarter results showing a 3% increase in overall revenues but operating income down 1%, FedEx said it would reveal further cost-cutting plans next month at FedEx Express, which suffered a 28% drop in income during its latest quarter. The company is to refocus its efforts in response to a general trend of customers shifting from premium express services to economy deferred services.

While it revealed its latest figures, FedEx Express also announced price rises to take effect for US services in January 2013. An average price increase of 5.9% is countered by a 2% drop in fuel surcharges, but in the detail it appears economy services are generally having prices increasing by more than premium services.

All change at the top at Yodel

Former Parcelforce Worldwide managing director Dick Stead officially started as executive chairman of Yodel – revealing on his first day that CEO Jonathan Smith and commercial director Adam Smith are leaving the company, along with chief information officer Greg Smith.

The UK parcel delivery company that bought the domestic operations of DHL Express UK back in 2010, has had a tough 12 months with Stead conceding the company had had issues in its service quality.

Yodel has started the search for a new CEO, but Stead has opted for a slimmed-down executive team, which will report to him by October. Jonathan Smith will remain at Yodel through to the end of the year, to help with the transition and the company’s peak season.