Industry Post
Consignia is to start trials in the next few weeks to stop second deliveries, which accounted for just 4% of mail, but 30% of the cost of deliveries, which was “nuts”, said Mr Leighton.
Ending second deliveries will save “several hundred millions of pounds”, Consignia’s chief executive John Roberts revealed.
He also told MPs that changes to delivery times could lead to a five-day week for postal workers, who usually work six days at the moment.
Mr Roberts admitted that many people will be unhappy at plans to have a single delivery a day, but he said it was a “very important” development because of the cost savings.
The chief executive said he would not be surprised if overseas postal firms already had plans to bid for Consignia’s business.
He also revealed that Consignia was looking to transport more first-class mail by road and switch more second-class post to rail.
Consumer group Postwatch told MPs it believed Consignia’s current financial problems stemmed from poor management resulting from its monopoly position rather than from competition.
“Competitive pressures will provide the incentive to improve efficiency and to promote a more innovative range and better customer service,” the group said in a submission.
