Tag: Domestic

CEO of Springer's troubled postal arm to quit (Germany)

Posted by | Dec 18, 2007 | |

The head of Axel Springer’s troubled postal business PIN Group is quitting and withdrawing an offer to buy the unit, according to a magazine report on Tuesday, casting uncertainty over PIN’s future.

Last week, German publisher Springer pulled the financial plug on its loss-making mail service company and said it was looking to sell its majority stake.

Springer has been considering options for its stake in PIN ever since the German government last month agreed to impose a minimum wage in the sector higher than that paid by PIN.

The publisher said it was now no longer willing to provide more financial support to PIN group, which PIN Chief Executive Guenter Thiel has said lost 50 million euros this year.

On Tuesday, German magazine Focus said that Thiel has told PIN Chairman Bodo Hombach he will withdraw his offer to buy the company and will resign from his post. PIN was not immediately available for comment.

Springer, publisher of Europe’s best selling tabloid Bild, acquired a majority stake in PIN for 510 million euros (USD 741 million) earlier this year in anticipation of the liberalisation of the postal market in Germany. Deutsche Post loses its domestic mail monopoly next year.

The publisher hoped to challenge Deutsche Post by merging the PIN business with Dutch TNT’s German mail division, a person familiar with the matter told Reuters. But those plans were thwarted by the agreement on minimum pay.

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Postal Service Hi-Tech Human Resources Transformation a Success

Posted by | Dec 18, 2007 | |

Postal Service employees everywhere now have access to a new cutting-edge human resources (HR) system to meet the demands of the information age. Rollout of the technology phase of the PostalPEOPLE initiative, the largest implementation of its kind in the federal government or private sector, was completed in October.

Using SAP software, the new platform replaces a system that once consisted of more than 3,800 Postal Service HR professionals relying on more than 200 processes and some 70 systems to support nearly 700,000 employees. Now, those HR professionals, free from repetitive, manual processes, can focus on the Postal Service’s strategic focus to better align the workforce and meet present and future challenges, head-on.

Completion of the nationwide rollout enables the Postal Service to introduce two significant new services to employees. First is a new self-service tool for managers, which provides managers, postmasters and supervisors with information and resources online to help manage the workforce, perform administrative tasks, and assist their employees with skill development.

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Royal Mail review likely to prompt call for split

Posted by | Dec 17, 2007 | |

A wide-ranging review of the effect of competition on Royal Mail is expected to be announced today amid concerns that the group’s ability to provide a core service is being damaged.

However, the review is also likely to trigger strong pressure for a major revamp of Royal Mail, including splitting it in two.

As part of its licence to operate, Royal Mail must provide a universal service, meaning that post can be sent anywhere at a flat rate.

The postal group has asked Postcomm, the industry regulator, to modify this obligation to reflect its costs.

It has been unsuccessful in its request, although it has been allowed a series of stamp price rises.

In the review, rival postal operators, such as TNT and Business Post, are likely to be asked to help to fund Royal Mail’s universal service obligation.

John Grogan, the Labour MP for Selby, who has campaigned to keep full public ownership of Royal Mail, said: “If the private sector companies are strong enough, then I think they should make a contribution to the universal service.

The rival players are likely to resist such moves because they claim that they are disadvantaged by Royal Mail charging too much for them to use its infrastructure and also that Royal Mail is exempt from VAT while they have to charge it.

Instead they are expected to use the Government’s review to demand that Royal Mail’s operations are split up to promote more competition.

They want to see Royal Mail’s letters division, with which they compete, separated from its network operations, which they have to use for the final-mile delivery.

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Royal Mail response to Government review (UK)

Posted by | Dec 17, 2007 | |

Royal Mail is committed to maintaining a high quality, financially strong and sustainable postal service with the Universal Service Obligation at its heart, in line with the Postal Services Act and the EU’s Postal Services Directives.

The last few years have seen a huge change in the way in which people and businesses connect and communicate with each other and this is clearly having a major impact on the postal market.

We therefore welcome the decision by the Government to review the impact of liberalisation on UK postal services and trends in future markets development – and its likely impact on Royal Mail, alternative carriers and, most importantly, consumers.

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UK Ministers announce postal review

Posted by | Dec 17, 2007 | |

The Royal Mail’s 350-year monopoly ended at the start of 2006 when other licensed operators were given the right to collect and deliver mail.

Strike action by postal workers this summer damaged Royal Mail’s reputation.

Business Secretary John Hutton said retaining the universal postal service remained a “top priority”.

At the same, ministers announced that Royal Mail chairman Allan Leighton would have his contract extended by a year to March 2009.

Unions criticised Mr Leighton’s handling of a bitter pay dispute earlier this year which, although now resolved, is estimated to have cost Royal Mail more than GBP 200m.

There can be no doubt that the market has evolved with new technologies such as email and text messaging having a huge effect on the way we communicate

Although it has faced increased competition for two years, Royal Mail is still the dominant postal supplier in the UK, with a market share of more than 90 pct.

But the amount of mail it handles has fallen and social changes which have seen more people using email to communicate.

This is a crucial review which will help to shape the future of the postal sector

Terms of review

– Assess impact of market liberalisation
– Look at future market trends
– Consider how to maintain universal service

The review, led by former Ofcom deputy chairman Richard Hooper, will conclude next summer.

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