Year: 2003

As the postal market slowly opens up, exploitation of loopholes in the Reims agreement is on the increase. Only a truly liberalised market will deter firms from bending – or breaking – the law. David Reed reports.

Direct marketers do not often think about Reims. Except when ordering champagne, that is, when they may prefer Epernay-based Moet et Chandon to Reims-headquartered Louis Roederer.

Yet the Reims agreement drawn up by the Universal Postal Union (UPU) has a significant bearing on direct marketing. The goal for the UPU was to stamp down on ABA remailing – the preparation of direct mail in one country for shipping to a second, only to be remailed back to country of origin.

It may seem an arcane practice. But remail used to allow direct mail campaigns to be sent for a few pence per item, rather than the 17p achievable using postal discounts in the UK. Yet post-Reims, there is a growing threat of loopholes and grey areas being exploited to undermine the benchmark price of domestic postage.

Postal workers have announced they will stage a one-day strike in London on Wednesday 1st October. They also threatened to carry out action with other unions if their dispute was not settled.

The Communication Workers’ Union, which wants increased pay weighting in the capital, may co-ordinate future strikes with Unison, the local government union.
Nick Wright, Unison’s regional general secretary for London, told the Financial Times that the idea was “excellent”, adding that Unison “would be happy to co-ordinate strike action with the CWU”.

The joint action could spread even further. Unison is today holding talks with two other unions representing local government workers – the GMB and the Transport and General Workers’ Union – to discuss “combining resources”, Mr Wright said.