Year: 2003

Adam Crozier, Royal Mail’s chief executive, has said: “We are conducting a series of reviews of the non-operational parts of our business to strengthen further the focus on Royal Mail’s commercial priorities.

“Inevitably, the reviews will lead to a reduction in the numbers of non-operational roles.

“The fairest approach, therefore, is to offer all non-operational managers the opportunity to request voluntary redundancy, even if they work in areas unaffected by change.

Royal Mail press release 12/12/03
Voluntary redundancy programme for Royal Mail’s non-operational managers
[12/12/2003]
Up to three thousand non-operational managers are expected to leave Royal Mail under a voluntary redundancy programme launched by the company today.

All of the job losses will be part of the 30,000 jobs which Royal Mail has already announced will be made redundant during the company’s three-year turnaround plan.

The round of voluntary redundancies announced today will not affect postmen and women or other employees in operational jobs providing Royal Mail’s services to its customers.

Adam Crozier, Royal Mail’s Chief Executive, said: “We are conducting a series of reviews of the non-operational parts of our business to strengthen further the focus on Royal Mail’s commercial priorities.

“Inevitably, the reviews will lead to a reduction in the numbers of non-operational roles. The fairest approach, therefore, is to offer all non-operational managers the opportunity to request voluntary redundancy, even if they work in areas unaffected by change.

“However, people who want to go will not automatically be allowed to leave. Decisions will be made ultimately on what’s right for Royal Mail.

“We are looking to offer voluntary redundancy to up to three thousand managers,” said Mr Crozier. It is expected that most of the people leaving would go by the end of the financial year in March.

Mr Crozier said: “Any job reductions we have to make are the hardest part of Royal Mail’s three-year renewal plan. But there is no avoiding the harsh reality that Royal Mail must reduce its overheads and become more efficient to ensure a successful future.

“We have achieved much since the renewal plan was launched in April 2002 but there is still a great deal of hard work to be accomplished to hit our goals. These remain: to make Royal Mail a great place in which to work, improve customer service, get back to profitability and stay there, and deliver a positive cash flow to enable the company to invest and grow.”

Ends

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Notes to Editors

1. Royal Mail announced last month a small £3 million profit before tax – on a turnover of more than £4 billion – for the first half of the 2003/2004 financial year. However, the company has stressed that it faces heavy additional costs of around £500 million in a full year from the 14.5% pay package it has begun paying to postmen and women, and from significantly higher employer’s contributions to the pension fund to ensure the fund’s obligations continue to be covered in full.

Talks aimed at resolving a long running dispute over pay and working practices at the Royal Mail have ended in agreement.

A proposed package will be recommended to the executive of the Communication Workers Union.

The two sides have been holding talks for weeks in a bid to resolve issues including the scrapping of second deliveries.

Royal Mail has said it will cut 3,000 jobs, mostly in management, by March 2004.

A company spokeswoman said the job cuts would be through voluntary departure, adding there are unlikely to be any outright redundancies. Most of the affected staff work in the Royal Mail headquarters and as finance personnel. The 3,000 jobs are among 30,000 posts being cut as part of a three-year program. Around 14,500 jobs have already been cut since the plan was launched 18 months ago.

Postwatch, the consumer watchdog for mail services, has hit out at Royal Mail for failing to increase its consultation time for post office closures to take into account the Christmas holidays.

Ordinarily, consumers and local authorities have six weeks to discuss the impact of a local closure and then respond. However, Postwatch argues that, by putting out consultations during the Christmas period, Royal Mail is reducing the time they are given.