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UPS appoints two key posts in Europe

Romaine Seguin, a 25-year veteran of UPS who has been leading the company’s South Europe District, has been promoted to Vice President of Operations for UPS’s entire Europe Region. In her new role, Seguin will be responsible for small package operations in 47 countries and territories throughout Europe, the Middle East and Africa.

Cindy Miller, a 20-year veteran of UPS who headed the Metro Chicago District, has been named Vice President of Operations for the company’s South Europe District. In her new role, Miller will be responsible for small package operations throughout Italy, Spain, Portugal, Greece, Bulgaria, Romania, the Balkans, the Middle East and Africa.

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DX Group – Royal Mail VAT advantage stifles competition (UK)

The DX Group has reminded Postcomm that the VAT exemption applied to Royal Mail is, in their view, continuing to stifle competition.

In response to Postcomm’s Strategy Review, Michael MacClancy, Head of Regulation at DX said:

“Royal Mail’s VAT exemption will continue to tip the playing field against end to-end entrants for the foreseeable future. The VAT exemption extends to positive discrimination in favour of so-called access competition over end-to-end competition. If consolidators such as TNT and UK Mail use Royal Mail for final delivery then they can take advantage of the recently introduced agency agreements to minimise VAT liability for their customers. If they use another operator (such as DX) they must charge VAT.”

“The VAT exemption not only places entrants at a disadvantage in comparison with Royal Mail, it also gives TNT and UK Mail an advantage in comparison with other operators. Furthermore, as we have argued previously, access is a very limited form of competition with limited economic benefits. If Postcomm really does wish to create the right conditions to enable a further withdrawal of sector specific regulation it will have to find a way of promoting end-to-end competition that will apply pressure along the whole of Royal Mail’s value chain.”

“Postcomm should avoid further tilting of the market towards the access model. We note that there are substantial differences between the postal markets of the UK and USA, not least of which are the statutory monopoly over delivery enjoyed by USPS and a workshare pricing mechanism that appears to leave USPS with a considerably higher proportion of the revenue than the UK equivalent.”

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Canada E-Commerce Growing Quickly

Online sales increased at a double-digit pace for the sixth consecutive year in 2007, according to Statistics Canada. Total private and public sector Internet sales hit an estimated C$62.7 billion ($58.6 billion), up 26% from 2006.

Despite the continued strong growth, e-commerce still represents a relatively small fraction of total economic activity, at about 2% of total operating revenue.

Statistics Canada said that only about 8% of Canadian private sector companies sell goods and services online.

In the private sector, business-to-business sales accounted for 62% of online sales in 2007, down from 68% in 2006. The proportion of online business-to-consumer sales climbed from 32% to 38%.

B2C e-commerce sales therefore reached C$23.8 billion ($22.2 billion), or 38% of C$62.7 billion. That is almost 50% higher than eMarketer’s November 2007 estimate. eMarketer counts online travel, tickets and digital downloads as services, not products, and thus excludes them from its estimate.

It is estimated that customers outside Canada generated almost one out of every five dollars (19%) in online sales in the private sector, similar to the last two years.

While Canadian consumers are comfortable purchasing travel, media products, and computer hardware and software online, they tend to shy away from high-touch categories such as apparel and home furnishings. Instead, they head to one of their excellent shopping malls. A common explanation for this tendency is that, unlike Americans, Canadians lack a catalog tradition and have not been conditioned to shop remotely.

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Deutsche Post and the services trade union reach agreement

Deutsche Post and the services trade union Ver.di reached an agreement today in their collective-bargaining negotiations for about 130,000 company employees. Both parties agreed on an extended job security pact, a pay increase for workers covered by the collective-bargaining agreement and additional weekly working time.

The Group’s employees covered by the agreement will receive a one-time payment of 200 euros as well as a 4 percent raise that takes effect on Nov. 1, 2008. Ver.di had originally demanded 7 percent. In addition, the workers will receive a 3 percent raise in December 2009. This ensures planning security for more than two years. The working week for workers covered by the agreement will remain at 38.5 hours.

In return, Deutsche Post won an agreement to reduce paid breaks, i.e., employees will work about 50 minutes more each week for the wages set by the bargaining agreement. Ver.di’s original demand for 10 additional days to shorten the total working time – or vacation days – has been dropped.

The working week of Deutsche Post’s civil servants will remain at 38.5 hours – as opposed to rules applying to other federal civil servants. This agreement is still subject to approval by the German finance minister. Paid breaks for this employee group will be reduced as well, meaning that the previously mentioned additional work on top of the 38.5 workweek will take effect.

The agreement, which is still subject to approval by Ver.di’s collective-bargaining commission, will run through June 30, 2010.

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Austrian Stamp Most Expensive Stamp Ever Made

Austrian postal operator Post.at, is to release what is thought to be the most expensive stamp ever made – a revolutionary lenticular stamp to celebrate the UEFA EURO 2008. The new stamp goes on sale on 5 May 2008 and the issue will have a matching special postmark.

According to Post.at, 48 images of a TV recording are superposed on the stamp. To the viewer, the optical effect is that of a film sequence of approx. 3 minutes. The stamp features the legendary goal scored by Andi Herzog, Austria’s record-breaking international player. With this dream goal against Sweden scored in the 76th minute on 6 September 1997, Andi Herzog paved the way for the Austrian national team to enter the main draw of the World Championships 1998 in France. On the stamp, the goal and its setup from three different perspectives are shown.

Austrian Post aimed to bring the legendary team spirit of the 90s back to the hearts and minds of today’s players and to football enthusiasts in Austria. The Andi Herzog stamp is the technologically most sophisticated stamp of all time. It is also the largest one, measuring 6.5 by 4.7 cm. In addition to that, it is also the most expensive stamp ever made, its nominal value being 5.45 euro. This stamp is available for purchase at all postal branches and in our online shop.

Also available will be an exclusive picture postcard produced with lenticular technology to match the special-issue stamp. This postcard also features the record-breaking international player and is available in Post.at’s online shop only.

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U.S. National Postal Forum Workshops Help Businesses Find Success in Mail

The 2008 National Postal Forum is going to extremes to help businesses navigate the terrain of mail more smoothly. This year’s theme is “extreme performance” and workshops will offer attendees the opportunity to hear from industry experts on proven strategies for success.
The Package Symposium offers shippers the opportunity to learn how to cut shipping costs and how increased technology can provide a wealth of new information about packages. Recent changes in postal law offer the Postal Service unprecedented freedoms to develop new products and quickly bring them to market. Experts will host roundtable discussions on the latest case studies and market briefings.
Sustainability continues to take center stage. The Direct and Green Symposium shows marketers how to create successful direct marketing campaigns in a dynamic, resource-friendly way. Experts in the field offer tips on leveraging green-smart practices to improve consumer response.
Intelligent Mail barcodes will become a requirement for discount eligibility in 2009. Intelligent Mail can streamline addressing, preparation, acceptance, processing, transportation and delivery methods. At the Intelligent Mail Symposium, experts discuss how businesses can implement Intelligent Mail to achieve ultimate end-to-end visibility, improve address quality and turn data into information that can drive greater business results.

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Liberia Post working to regain customers' confidence

Improving the quality of service and restoring customers’ confidence in postal services are among the priorities of Liberia’s new Minister of Posts and Telecommunications.

That’s what Jeremiah Sulunteh told the UPU when he paid a visit to the International Bureau last week, his first since he assumed his duties last February.

Sulunteh, who is also Postmaster General, said Liberia was making good progress in restoring postal services in the country, whose postal network came to a standstill during the civil war. Since August 2007, several post offices are open for business again, and postal operations are slowly but surely restarting.

While customers are coming back to the Post and mail volumes are increasing, the Minister said private operators were very active on the market. His goal is to improve the quality of service to win back customers. “If we can improve the delivery of EMS items (the Post’s express service) and take better care of our customers, I believe customers will come to us first.”

Sulunteh said the need for efficient postal services and the prospects for growth were clear. With stability having returned to the country, many Liberians living in neighbouring countries are coming back to the homeland and settling in the rural areas, generating new economic activity.

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