Mailers Technical Advisory Committee (MTCA) Workgroup No 114
Mailers Technical Advisory Committee (MTCA) Workgroup No 114
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Royal Mail condemns CWU strike decision
Royal Mail today condemned the decision by the Communications Workers Union to call further strikes. The decision comes after five weeks of discussions, under the auspices of the TUC and ACAS, to try to resolve the issues that lie behind the dispute. During those talks we offered both short and long term solutions, while keeping within the 2.5 pct available for pay this year but rather than accept a way forward the union tabled proposals that would cost the business GBP 2.4 billion over four years.
The company also criticized the CWU for failing during seven months of talks to produce any serious proposals that could help resolve the issues that lie between us and move the business forward.
Royal Mail criticized the union for misleading their members over the important issue of pensions. The union has wrongly said that we have taken “executive action” on pensions when they know the company has not yet started its official 60-day pension consultation, which will begin in the first week in October and during which we will be listening to the views of all our people and other stakeholders. Any other future operational changes recently announced by the company have been done in line with our existing agreements with the union and give the proper notice period before the change.
The call for further strikes does not change the urgent need for Royal Mail to modernize and become more flexible and efficient if it is to survive. For our people, flexibility would simply mean working the hours they are paid to work and to do what they are trained to do in a safe environment – something which has been taken for granted for many years in almost every company in the UK.
The union’s repeated refusal to contemplate the changes we must make if we are to be able to compete in an increasingly tough market simply shows that they are completely out of touch with UK industry and the reality of how competitive markets work.
Read MoreFedEx Corp. Reports higher first quarter net income
FedEx Corp. today reported earnings of USD 1.58 per diluted share for the first quarter ended August 31, compared to USD 1.53 per diluted share a year ago.
FedEx increased its revenue and earnings against the backdrop of a sluggish U.S. economy, said Frederick W. Smith, FedEx Corp. chairman, president and chief executive officer. Outside of the United States, the economy is generally solid, contributing to the growth in our international express shipments. I continue to believe that FedEx will, over the long-term, reap the rewards of our strategy of investing in key growth markets and strengthening and expanding our worldwide networks.
First Quarter Results
FedEx Corp. reported the following consolidated results for the first quarter:
Revenue of USD 9.20 billion, up 8pct from USD 8.55 billion the previous year
Operating income of USD 814 million, up 4 pct from USD 784 million a year ago
Operating margin of 8.8 pct, down from 9.2 pct the previous year
Net income of USD 494 million, up 4 pct from last years USD 475 million
While operating margin improved in the FedEx Express and FedEx Ground segments, consolidated margin declined due to a lower margin year over year at FedEx Freight and to network investments to increase capacity, improve service quality and increase productivity.
Total combined average daily package volume in the FedEx Express and FedEx Ground segments grew 8 pct year over year for the quarter, due to growth in ground and international express shipments. The increase in international domestic express shipments resulted primarily from recent international acquisitions.
Read MoreBusiness Post launches i-mail
Business Post’s UK Mail business has announced the New Year launch of its i-mail next day service in a partnership with Royal Mail. Business Post customers will be able to send an electronic copy of a letter or document to one of Royal Mail’s sort centres where it will be printed, sealed and transferred to Royal Mail for final-leg delivery.
Business Post says prices for the new service will start at less than the price of a first-class stamp, including stationery and printing. It claims the agreement makes UK Mail the first private organisation to provide an alternative next-day service to nationwide addresses. Customers will be able to send mail as late as 6pm to secure next-day delivery.
“We’ve been looking at it a little while,” says head of group marketing Nigel Proctor, who adds that the group has been in talks with Royal Mail for around eight months. In-house trials of the service will begin next month and software developments are in place with a third-party provider.
Read MoreFedEx first-quarter earnings up 3 pct to 1.58 USD per share; issues FY warning
FedEx Corp reported earnings of 1.58 USD per share for the first quarter, up 3 pct compared to 1.53 a year ago.
The company said revenue was 9.2 bln USD, up 8 pct from 8.55 bln USD the previous year, and operating income was 814 mln USD, up 4 pct from 784 mln USD a year ago.
Net income was 494 mln USD, up 4 pct from last year’s 475 mln USD.
However FedEx said it expects earnings to be 1.60-1.75 USD per share in the second quarter, compared to 1.64 USD a year ago.
‘While the U.S. economy is growing at a moderate pace, recent financial market volatility and high energy costs have increased the uncertainty surrounding the near-term economic outlook, and weakness in the housing sector continues,’ said Alan Graf, FedEx’s chief financial officer. ‘As a result of this weaker than anticipated economic environment, particularly its impact on the LTL freight market, we have reduced our earnings forecast by four percent for the full year.’
For the full year, the company now expects earnings of 6.70-7.10 USD per share. The capital spending forecast is 3.5 bln USD, of which FedEx said approximately 70 pct is targeted for growth. ‘However, management is reviewing the timing of capital outlays, which could result in lower spending for the year.’
Read MoreLa Poste to choose between two candidates to buy Europe Airpost
The board of directors of La Poste, the French national postal services group, will today decide on an acquirer for the group’s air freight unit, Europe Airpost, formerly Aeropostale. The national group, which owns 100 per cent of the company, had two candidates to choose from as at September 10: the Irish freight company Air Contractors, and the French passenger carrier Aigle Azur.
At 47m euros, the second offer is substantially higher than the first (38m). Europe Airpost, which has 26 aircraft, is active in both freight and passenger transport.
Correos accolade with the “Futurshop” award as best online portal for services
Correos corporate website www.correos.es was accoladed with the “Futurshop awards 2007” for the “best on line website for services”. The main criteria for this award was the possibility to have access to all services offered in the offices network.
This is the second edition of the awards. A record of 46 nominees competed for honours this year.
The “Futurshop” award is celebrated in the framework of ExpoRetail. Maria José Navarro, Exporetail’s Director highlighted that the objectives of the awards are to promote and disseminate the best products and services of the sector.
The corporate website was recognised before by “Fundetec Awards” as the “best project of public administration for citizen” and was awarded by Expansion.com under the “Best Innovative portal”.
MPs urge extension of shares agencies
The agency set up to help the taxpayer get better value for money from the remaining nationalized businesses should have its remit extended and its powers strengthened.
But a potential conflict of interest in its responsibilities for the Royal Mail and the Post Office network – one of the more difficult issues facing the government – should be removed, the Commons’ public accounts committee recommended yesterday.
The Shareholder Executive, set up in 2003, advises on or manages the government’s shareholding in 27 of the bigger and more sensitive businesses that taxpayers still own or have a stake in – such as BNFL, air traffic control, the Met Office, Channel 4, British Waterways and the Royal Mint.
It has done a good job, the cross-party group of MPs said yesterday, helping stem losses and increase profits in businesses that turn over about GBP 21bn.
A separate board is being created to oversee the executive, which should help with the independence issue, the committee said.
But departments with other businesses that have a turnover of more than GBP 4 bn are not required to use the executive’s services – and in at least one case appear to have struck poor deals as a result.
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