Author: Archive

Downsizing the Royal Mail

Posted by | Mar 26, 2002 | |

It has been a wonder of the past 20 years that large utilities such as telecommunications, power and gas were able to shed about a third of their staff after privatisation with no discernible interruption to service. Now Consignia, the former Post Office, has announced plans to cut 15,000 jobs as a first step in reducing its 220,000 staff by up to a fifth over the next three years. The process will be painful for those involved but cutting costs is essential to ensure a future for an organisation losing Pounds 1.5m a day.

Read More

Consignia stirs backbench anger

Posted by | Mar 26, 2002 | |

The government’s problems with its backbenchers deepened yesterday as Labour MPs voiced anger at the prospect of job losses at Consignia and met a taxpayers’ bail-out for Railtrack shareholders with surly resignation.
Patricia Hewitt, trade and industry secretary, received a hostile reception when she told the Commons that plans to axe 15,000 Consignia jobs were “the first of several necessary steps” to renewing Britain’s postal service.
This could require another government bail-out of up to Pounds 400m to support the cost of generous redundancies needed to avert the threat of a national postal strike.

Read More

Japanese mail firms must install 100,000 mailboxes each

Posted by | Mar 26, 2002 | |

The government has mapped out a policy to make it obligatory for firms entering the mail delivery industry to install about 100,000 mailboxes each, bringing the total number of privately installed mailboxes close to 60 percent of those currently used by the Postal Services Agency.

Read More

Parcelforce to bear brunt of cost cuts at Consignia

Posted by | Mar 26, 2002 | |

CONSIGNIA, the state-owned UK post office losing GBP1.5m ($2.13m) a day, is shedding 15,000 jobs over three years.
But Parcelforce Worldwide, Consignia&’s lossmaking parcel delivery arm, will bear the brunt of a group-wide cost-cutting package that will save GBP1.2bn by 2005.
The cutbacks reflect the gradual loss of Consignia&’s letter mail monopoly, while Parcelforce _x0014_ carrying 120m packages a year _x0014_ competes head-on with the private sector.

Read More

China express delivery firms ask govt to help resolve dispute with China Post

Posted by | Mar 26, 2002 | |

The China International Freight Forwarders’Association has applied for government to help resolve a dispute between theseveral hundred express delivery companies operating in the country and theState Postal Bureau, which operates its own postal services under the name ChinaPost. The bureau issued a document earlier this month saying that all express delivery firms will only be allowed to deliver goods weighing morethan 0.5 kg and costing more than China Post’s Express Mail Service.

Read More

15,000 jobs exit at British Post

Posted by | Mar 26, 2002 | |

Restructure of loss making parcels business and rationalization of transport operations will bring Consignia (former British Post) 460 million pound in cost savings and cost 15,000 jobs, 13,000 through redeployment or redundancy.
‘Consignia will restructure its loss making parcels and express business, Parcelforce Worldwide, and make radical changes to its internal logistics and transport networks as the first moves in a three year renewal programme to cut costs by more than 1.2 billion pound and provide a secure long term foundation for the company and for universal postal services in the UK.

Announcing the plans, Consignia Chairman Allan Leighton said, “Consignia is in a perilous position – losing more than 1.5 million pound every day. Parcelforce Worldwide is losing 15 million pound per month as we have failed to reduce our costs fast enough as business has declined. We need to renew our operations and halt the financial losses which put key services at risk.

Both measures announced today are far reaching – but they are just the start, not the end. They will ensure that real progress is made in the first year of a three year strategy to restore profitability, deliver positive cash flow, improve services and make the business a better place in which to work.”

From July Parcelforce Worldwide will concentrate solely on the growing market for time-guaranteed and next day and two day express deliveries, and will cease its declining and unprofitable portfolio of three day plus delivery products. The market for three to five day deliveries has halved within five years. Consignia will transfer its universal parcel service to Royal Mail, which will use its existing network to provide a uniform and affordable parcel delivery to every UK address, no matter how remote.

The five parcel distribution centers that currently handle Three Day plus deliveries will close and the number of Parcelforce Worldwide depots will reduce from 101 to 51.

Parcelforce Worldwide currently employs around 11,700 people, either in a dedicated parcels unit or providing operational support elsewhere in Consignia. The current workforce will, over the next two years, be reduced by around 6,700, over and above natural turnover.

Up to 900 of those employees whose current jobs disappear will have the opportunity to work with Parcelforce Worldwide as owner-drivers in line with agreements reached with the trade unions.’

Source: Consignia release

Read More

Threat of strikes after Consignia announces it will cut 15,000 jobs

Posted by | Mar 26, 2002 | |

THE STATE-OWNED postal group Consignia announced 15,000 job losses amid fresh warnings last night by senior managers of even more cuts and a threat of national strikes by union leaders.
John Roberts, Consignia’s chief executive, warned MPs that thousands of jobs could be lost on top of those already confirmed if the postal regulator moved too quickly to introduce unfettered competition.
Mr Roberts said a rush to liberalise the industry could put universal deliveries at risk and cost Consignia up to pounds 750m, forcing even more job cuts.

Read More

Advertisement

Advertisement

Advertisement

P&P Poll

Loading

How ready do you feel for the de minimis changes coming in July?

Thank you for voting
You have already voted on this poll!
Please select an option!




View ResultsHide Results

Post & Parcel Magazine


Post & Parcel Magazine is our print publication, released 3 times a year. Packed with original content and thought-provoking features, Post & Parcel Magazine is a must-read for those who want the inside track on the industry.

Subscribe to the Magazine

 

Pin It on Pinterest