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The Telegraph: UK postal strike 'could last for months'

After two days of strikes, up to 100 million letters and parcels are estimated to be stacked up in sorting officers around the country as the worst stoppage for two decades paralyzed Britain’s postal system.

The five-day dispute will cost Royal Mail more than GBP 100 million by the time it ends on Wednesday. Despite more talks about pay, pensions and job cuts at the Trades Union Congress, both sides were far from agreement last night.

The Royal Mail claimed that 50 per cent more people were at work compared with previous strikes in the summer, although this was disputed by the Communications Workers Union (CWU), which said the action was “solid”.

Up to 130,000 postal workers walked out at noon on Thursday for 48 hours and will stage another two-day walkout from 3am on Monday, which will hit deliveries until the end of next week.

The postal strike in numbers:

400 million – Backlog of letters which will build up if strike lasts for five days.

GBP 10 million – Estimated cost of strike to small businesses in lost business and delayed postal payments.

135,000 – Postal workers on strike, out of a total of 180,000.

33,000 – Post Office bicycles standing idle while their riders are on strike.

GBP 790,000 – Oay packet of Royal Mail Group chief executive Adam Crozier in 2005.

8 – Miles travelled every day by postal workers, carrying around heavy mailbags.

5.6p – Loss to Royal Mail every time a stamped letter is sent. The firm loses some £4 million a week.

GBP 4 billion – Royal Mail Group pension scheme accounting deficit.

113,000 – Post boxes in the UK.

40,000 – Jobs the Communication Workers’ Union claims will be lost under the terms of the current pay offer.

27 million – Postal addresses in the UK.

11kg – The weight limit on a postal worker’s pack.

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World and Croatian Post Mark Their Anniversary

Under the slogan “World Postal Network: Stay in Touch”, World Post Day will be marked on October 9, and a day later, Croatian Post will celebrate its Day.

World Post Day is marked throughout the world in the memory of establishing World Postal Union, one of the oldest international organizations. Namely, delegates of 22 countries from Europe, America and African have signed the so called Bern Treaty on October 9, 1874 which founded the first joint convention on international postal traffic. This was the first step towards realizing principles of universality of the postal services on a unified postal territory, Croatian Post informs.

It is pointed out that on October 10 workers of Croatian Post will mark their day as a Remembrance Day of 1990 when the Croatian Parliament reached the Law on founding the public Croatian postal and Telecommunications Company.

Croatia became a member of the World Postal Union on July 20, 1992, thus becoming an equal participant in international postal traffic and a part of the largest delivery network in the world.

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Charity furious over mail strike setback

The Weldmar Hospicecare Trust booked a special door-to-door mail drop two years in advance so it could ensure that its 132,000 leaflets were delivered to supporters for a remembrance and fundraising campaign.

But it was forced to cancel the mail shot about its annual Light up a Life campaign because of the postal strike and cannot book another slot.

Fundraising director Caroline Nickinson said: “We’re really angry because for us this is a really important way to reach the people who support us and a lot of people will think we just haven’t bothered to ask them.

“This was always our first point of contact to advertise our Light up a Life campaign at Christmas.”

Under the Light up a Life initiative people can dedicate lights on Christmas trees in memory of loved ones.

The Royal Mail workers went on a two-day strike on Thursday after last minute talks failed when the 130,000 members of the Communication Workers Union rejected the pay offer of 2.5 per cent by Royal Mail.

A second two-day strike is planned from Monday causing further disruption to the industry and it is estimated the walkouts will cost the company millions of pounds.

Mrs Nickinson said: “When we tried to find out more we were told we could still send our letters to the headquarters but there was no guarantee they would be delivered and that would also mean losing the GBP 5,300 fee they charge.

“Luckily our newsletters weren’t printed yet so we could cancel the order at the last minute which was due to cost us more than GBP 4,000.

Spokesman for Royal Mail Richard Hall said: “Regrettably we have had to cancel our door-to-door contracts because of the industrial action. We know it is causing a real inconvenience and we apologise for that.”

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Poste Italiane signs air cargo deal with Italian employers

Poste Italiane has signed an agreement with the influential Italian employers’ association Confindustria with the objective of winning more air express business.

Under the deal, the postal operator has guaranteed that its airline subsidiary Mistral Air will provide cargo transportation “at particularly competitive rates” and in accordance with the different types of freight and customer wishes.

Mistral Air currently operates with three B737-300 Quick Change aircraft for main routes and two chartered BA 146-200 QT planes for smaller destinations. The airline, which transports shipments of Poste Italiane and its express unit SDA, aims to carry 8,750 tonnes this year.

Poste Italiane chairman Massimo Sarmi added that the deal confirmed the strategic role that the postal group could play in providing logistics services and to support the success of products “Made in Italy” at an international level.

Poste Italiane last year signed an agreement with UPS, under which the US express and parcels giant will transport the post office’s international shipments and use its domestic Italian network for local distribution.

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Blue Dart wins Best Cargo Airline award

Blue Dart Express Limited, South Asia’s premier integrated express courier and package distribution company, has won the “Cargo operator of the year (Cargo Airline)” award presented at the Express, Logistics & Supply Chain Conclave. The awards were instituted by IndiaTimes Mindscape along with the Business India group. A C Neilson was accredited with the research for the awards nominee’s and the winners.

Blue Dart was adjudged winner in this category for its size of network, reliable service, range of products and value added services, introduction of new products and services and cost efficiency.

Blue Dart took a bold futuristic step and set up India’s first dedicated cargo aviation infrastructure with its own ground handling and maintenance capability way back in 1996. Till date it is the only domestic cargo airline with a fleet of jet aircraft – 2 B757s and 4 737s offering an unrivalled payload of 300 tonnes each night across 62 route connections. Blue Dart is firmly positioned as the market leader in the domestic air express segment with 41.7 pct market share.

Blue Dart was also awarded the CAPA “Cargo airline of the year Merit Award” in 2006.

DHL, which holds 81.03 pct stake in Blue Dart, bagged the “Express Operator of the Year Award”. Mr Craig Grossgart, Country Manager, DHL Express India received the award on DHL’s behalf.

About Blue Dart: Blue Dart, South Asia’s premier courier, and integrated express package Distribution Company, offers secure and reliable delivery of consignments to over 17,500 locations in India.

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Hermes Logistik opens new EUR 34m hub in Hückelhoven (North Rhine-Westphalia)

German parcels operator Hermes Logistik has put into operation its new hub in Hückelhoven, North Rhine-Westphalia, which is directly linked to an expanded distribution centre of German teleshopping company QVC, a key Hermes customer. The hub will also help the parcels operator further expand its European B2C activities.

Hermes said it has invested EUR 34 million in the building and sorting technology at the 12,000 sqm facility which will handle up to 50 million shipments 360 days per year. Some 125 new employees will sort up to 22,000 parcels an hour.

Construction took about one year. One technical innovation is the volume measurement of each shipment in order to calculate capacity loading exactly and optimise route planning.

The hub is directly connected to the neighbouring QVC distribution centre which has been expanded to 35,000 sqm during the same time. The teleshopping company will feed up to 11,000 shipments an hour into the Hermes hub. QVC plans to invest EUR 45 million in the overall extension of its central distribution centre, with completion due in spring 2008.

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FedEx filing hints at plan to build USD 87 M hub in Toledo area

In another indication that it plans to remain in the Toledo metropolitan area, package shipper FedEx Ground yesterday applied for tax abatement to build a new regional hub in Perrysburg Township.

The company would move from its present location in South Toledo to a planned USD 87 million facility on a parcel east of the Buck Road and I-75 interchange.

Under its application submitted yesterday to Wood County, FedEx Ground is asking for a 100 percent tax abatement on improvements to the property in Perrysburg Township.

A spokesman for Toledo Mayor Carty Finkbeiner said the move would be good for FedEx, Toledo, and the township because of a proposed joint economic development agreement that would allow for water and sewer services and tax-sharing.

Currently, FedEx’s local terminal is on Reynolds Road near Angola Road. It has about 400 employees, according to its application.

FedEx’s application says it plans to spend USD 48 million on new construction and USD 39 million on equipment as well as USD 73,000 on furniture and fixtures.

Work on the project would begin in November and end in June, 2009.

The application states that FedEx would create 31 new full-time and 91 new part-time jobs over the first three years, with total new wages of USD 2.9 million.

The existing annual payroll is 152 full-time employees and 259 part-time employees, paid a total of USD 9.2 million a year.

Nationally, FedEx Ground is undergoing a USD 1.8 billion expansion.

FedEx Ground’s income tax is said to yield about USD 200,000 a year for Toledo.

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