Year: 2003

Postal Union leader receives 23% pay rise

The left-wing postal union leader behind calls for a national strike has received a 23% rise in his annual pay – 10 times the rate for the postmen he represents.

The increase for Billy Hayes, 40, a former postman from Liverpool who is now general secretary of the Communication Workers Union, is worth an extra £13,461 a year, more than the average annual pay of a postal delivery worker.

His latest pay packet, which has emerged in newly released accounts, rose to £72,210 in 2002. Hayes’s total package was worth £115,000 because the union also paid more than £40,000 into his pension.

His new deputy, Dave Ward, is also thought to be receiving a package worth more than £100,000, prompting accusations that the pair are benefiting from the very “fat cat” pay packages that their union has publicly disparaged.

Hayes claimed not to know how much he was paid, though the union files details to a government department. “I can’t remember but I didn’t think it was that much,” he said. Ward was unavailable for comment.

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UK Royal Mail profits threatened by strike action

The Royal Mail is projecting it will bounce back to a profit of GBP100 mln this year, unless it is undermined by the looming threat of industrial action, says chairman Allan Leighton.

A national postal strike could be disastrous for projected profits and Leighton claims that he expects profits to recover by GBP700 mln from last year’s loss of GBP600 mln.

He said that the recovery could falter if negotiations this week to avert the first national postal strike in seven years fail to reach agreement.

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Airlines compete for mail business under a series of new USPS performance-based contracts

Several airlines have begun competing for mail business under a series of new U.S. Postal Service performance-based contracts. But optimism about significant revenue improvements is tempered by ongoing passenger airline security restrictions on parcel size mail and volume declines in the postal service’s air express products. The new contracts are a departure from the old practice of equally sharing business among air carriers, and part of the U.S. Postal Service’s effort to transform itself into a modem, cost efficient, self-sustaining enterprise. USPS said it expects the contracts, which became effective June 28, to increase efficiency and improve service.

“It’s the most dynamic change in 20 years,” USPS spokesman Mark Saunders said. “Up until now the airlines have looked at this business as a given. Now they have to earn it. If they don’t perform, they will lose it to their competitors.” USPS uses more than 15,000 commercial passenger, flights to move about 170 million pieces of mail each day. Direct marketers depend heavily on the USPS for parcel, expedited and global delivery services.

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Hermes take over link in logistics chain from Deutsche Post

ZeitungHermes Logistik Gruppe, Germany’s second-largest logistics service provider for deliveries by businesses to consumers, will in future manage incoming transport to its 65 depots in Germany. Until now, this part of the logistics chain has been provided by DHL Freight, a subsidiary of German postal service operator Deutsche Post.

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Astar asks U.S DOT to reject FedEx-UPS motion

Asserting that its competitors “will stop at nothing to prevent competition,” Astar Air Cargo, formerly DHL Airways, urged the U.S. Department of Transportation to reject a joint request from FedEx and United Parcel Service to refer the probe of Astar’s ownership to the agency’s inspector general. Astar charged that its opponents were pulling out all the stops to delay a resolution of the controversial case.

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