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Royal Mail and CWU push back talks deadline

The direct mail industry is on tenterhooks, following the extension of the 4 September deadline for talks between the Communication Workers Union (CWU) strike and Royal Mail.

Following four weeks of talks, in which strike action was suspended, this recent round of negotiations has been given until 9 September to broker a deal.

The extension until Sunday will then be followed by a further meeting on Monday. Neither party is commenting on the progress of the talks until then.

CWU campaign manager John Colbert told printweek.com: “There is a complete communications ban concerning these talks until Monday at the earliest.”

This summer’s strike action was a response to the Royal Mail’s modernisation plan and disrupted mail deliveries across the country and further action will cause more misery to direct mail companies.

The CWU claims Royal Mail’s plans will result in a permanent reduction in customer services and is an attack on postal workers’ jobs, pay and conditions.

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Menlo acquires Shanghai-based 3PL for US$60m

Menlo Worldwide has signed a definitive agreement to purchase Chic Holdings and its wholly owned subsidiaries Shanghai Chic Logistics and Shanghai Chic Supply Chain Management.

Menlo is acquiring Chic Holdings, its assets and subsidiaries for a cash payment of US$60 million plus an undisclosed future earn-out incentive based on its performance.

Headquartered in Shanghai, Chic Logistics provides domestic 3PL and transportation management services in The People’s Republic of China. The company has 130 operating sites in 78 cities, and generated revenues of US$55.2 million in 2006, a 40% increase over 2005.

According to Menlo Worldwide president Robert Bianco Jr, this is the most strategic acquisition in Menlo’s history.

Menlo’s China operations will be based at Chic Logistics’ headquarters in Shanghai. Combined, the two companies will operate from 139 sites in 79 cities, with nearly 180,000 m2 of warehouse space under management.

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UPS names new District Executive

David Ruiz, a 29-year veteran of UPS has been named the Vice President of Operations for the company’s Wisconsin District. In his new role, Ruiz will be responsible for more than 5,000 employees, 23 package centers, three distribution hubs and four sorting facilities within the Wisconsin District.

Ruiz most recently managed UPS’s North Europe District, which includes operations in 28 countries ranging from Belgium to Russia. Prior to that assignment in 2005, he served as vice president of operations in the South Carolina District.

Ruiz began his UPS career in 1978 as a loader/unloader in Metro Chicago and became a package car driver in 1985. Since then, he has held various assignments in the U.S., Mexico, Puerto Rico and Europe.

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Global-Z Enhances Central & Eastern European Address Hygiene for Direct Marketers

Global-Z International, a bureau specializing in the data processing of international mailing addresses for global direct marketers, announced today the addition of Poland to their data processing service designed to help mailers initiate and maintain better direct mail communication with new and existing customers in Central & Eastern Europe, in general, and Poland specifically.

“We have seen a recent and growing demand for postal data processing for Central & Eastern European countries, such as Poland.” noted Sasha Garder, President at Global-Z. Gross Domestic Product (GDP) growth in Poland has been strong and steady with its entry into the EU in 2004. Including planned incorporation of the Euro as its official currency scheduled for January 2012 (replacing the current official currency; Zloty), opportunities for Poland ‘s citizens, its neighboring EU members, and for direct marketers looking to add fuel to Poland ‘s economic engine, Garder added “Global-Z has seen growing demand for quality postal data hygiene.

Turkey and Croatia , also in negotiations for EU membership, will also get a close look from abroad from many perspectives– including that of direct marketers. Turkey is a country for which Global-Z provides direct marketers with postal address verification, correction and standardization at the street, city and post code levels of resolution. Additionally, this same level of Global-Z address resolution is available to mailers looking toward Hungary . Garder concluded, “As the EU expands its member states, direct marketers’ growing interest in these regions of opportunity will no doubt expand Global-Z’s Central and Eastern European response to market demand.”

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Austria Post to increase full year dividend by around 25 pct on 2006

Austrian Post AG is going to increase its full year dividend by 25 pct on 2006 and return at least 70 pct of its net profit to shareholders, the company’s chief executive Anton Wais said.

Wais said in addition EBIT is also expected to increase by between 20 and 25 pct and the dividend will reflect this growth accordingly, in an interview with the Austrian daily WirtschaftsBlatt.

For 2006 Austrian Post shareholders received a dividend of 1 eur a share, a payout of 70 mln eur for the postal company.

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Post Office traffic falls by 12 percent in Uganda

There has been a 12 pct decline in volume of letters posted and received through the post office, the Uganda Communications Commission’s executive director, Patrick Masambu, has said.

Volume of traffic is the number of letters, parcels and registered items that are delivered through the post office during a particular time.

He attributed the decline to competition from the new services like the Internet and mobile phone messaging.

In 2002, nine million letters were posted. In 2003, seven million were posted, while in 2004, they were 8.5 million. In 2005, 6.5 million letters were posted and in 2006, they were 4.8 million.

Masambu, however, said parcels and registered mail increased by 33 pct for the 2006/07 financial year.

“Increased activity in the international market accounts for this development,” he said in a report about the postal and telecommunications sector for the financial year 2006/2007.

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Gulf Air ties up with DHL Express to introduce Global Incentive Agreement Program

Gulf Air, the airline with the largest network in the Middle East, has entered into a strategic global partnership with DHL Express, the global market leader of the international express and logistics industry.

The Global Incentive Agreement Program, introduced by Gulf Air, is designed to provide key global partners with incentives to boost its cargo traffic volumes on a yearly basis and facilitate its inclusion in the partner’s core carrier program. DHL Express, a long time supporter of the airline, is the first partner to be signed up to this incentive agreement.

The agreement provides partners to access permanent bookings (PBs), direct booking, regular interface with HDQ key account managers, specific service level commitments and service recovery plans including claims processing.

The agreement will be for a one year period and both companies look forward to a successful and enhanced relationship.

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ICANN Posts Communication from the UPU regarding .POST Top-Level Domain

The Internet Corporation for Assigned Names and Numbers (ICANN) and the Universal Postal Union (UPU) have entered into negotiations intended to result in the delegation of the .POST registry.

According to a press release by ICANN, this outreach by the UPU is intended to inform the community about proposed aspects of the UPU’s business model and requested contractual agreement.

These proposals are based upon the UPU’s vision for adding significant value to: the DNS, its member states and their designated operators of postal services, and the recipients of postal services.

Certain aspects of these terms relate to the UPU’s status as an intergovernmental organization (IGO) comprised of member states and as specialized agency of the United Nations.

Significantly, this outreach invites public examination and comment at an early stage of the negotiation. Negotiations will continue and comments made regarding this material will be taken into account as they are received.

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