Royal Mail’s hopes of putting its strife-torn industrial relations record behind it and returning to profit this year were dealt a blow yesterday after a key group of postal workers voted to strike over pay. Postmen in Royal Mail’s London division voted by an overwhelming majority on a 68 per cent turnout to take industrial action in a dispute over London weighting.
Read MoreEighty thousand posties will get GBP20-a-week more to scrap the second delivery.
They also stand to pocket a GBP1,000 one-off bonus if the move saves as much as bosses expect. They will have to work longer shifts and will have bigger delivery rounds. Chief executive Adam Crozier revealed the plan after Royal Mail said it had slashed losses by GBP120 million in the past year.
Leaders of the Communication Workers’ Union have backed the proposed sweetener for staff.
Read MoreRoyal Mail Group yesterday showed signs of a turnround as it announced a halving of full-year losses to GBP600m. However, progress was marred by widening losses at Post Office branches and by the announcement of a GBP4.6bn pensions black hole. The group said it would pour GBP100m a year into its pensions scheme until it filled the hole, the result of falling equity prices. Royal Mail went into the red in 2001 and last year reported a record loss of GBP1.1bn. It has since shed 16,000 jobs and closed 345 post offices to cut costs. Its industrial relations have also improved, with a 90 per cent fall in industrial action.
Read MoreANC Express has won a £5m three-year contract with AU logistics
Read MoreDHL Worldwide Express has agreed to sell its DHL Airways unit to an investor group led by John Dasburg, chairman and chief executive of the U.S. airline, for USD57 million. The deal, which is expected to close by June 30 subject to approval by the U.S. Department of Transportation, is unlikely to silence claims by rivals FedEx Corp. and United Parcel Service that the airline does not comply with U.S. ownership laws.
Read MoreUniversal Express, Inc. announced today that effective August 30, 2003, its subsidiary, Private Postal Network, Inc., will be known as WorldPost(TM). The WorldPost Network of over 9,000 independently owned and operated private postal stores will continue its mission of improving cash flows and building national recognition for members of its private postal system.
Read MorePallet delivery is being linked to factoring, trade finance and inventory management, in what may be unique added-value service for shippers.
Bibby route one will do the transport but will also promote recently-expanded services from Bibby Financial Services.
Royal Mail Group today announced, as expected, an improving financial performance and predicted a return to profit in 2003/04. They also announced continued growth in mail volumes and their best industrial relations for over 10 years. At the same time the new Chief Executive admitted, (in advance of announcing the details next week) that it was disappointing only 3 of the 15 performance targets were met. One of the targets missed was for the flagship 1st class stamped and franked service. Royal Mail revealed that only 91.8% of 1st class letters arrive next day. This means that over a million letters per day are not arriving on time. Peter Carr, Chairman of Postwatch, commenting on the announcement said, “This is very good news and the new management should be congratulated – in particular they should be applauded for a year without industrial conflict. “Customers will remain concerned that, although improving, standards of service are still short of target at a time when prices have increased”.
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