Tag: Domestic

Union ire at Royal Mail boss pay

Posted by | Nov 1, 2007 | |

Figures in the Royal Mail’s latest annual accounts, released on Tuesday, show that Adam Crozier saw his pay rise by 26 pct in the year to 31 March.

Mr Crozier pocketed GBP 999,000 for the 12 months, up from GBP 790,000 in 2005-06.

The Communication Workers Union called for a review, but the Royal Mail said Mr Crozier deserved the increase.

‘Review needed’

In addition to the Royal Mail seeing profits fall by a third for the 2006-07 financial year, it was recently hit by strike action over staff pay and job security.

The reason Adam is paid what he is paid is that he runs a big company, he does a bloody great job and I’m glad we’ve got him

Royal Mail chairman Allan Leighton

The series of strikes ended after the Communication Workers Union (CWU) accepted a pay rise for its members of 5.4 pct from 1 October, and an extra 1.5 pct from next April.

The Royal Mail had initially offered 2.5 pct.

“Postal workers have had to take eight days of strike action this year to get any pay rise at all, while the chief executive receives GBP 1m,” said CWU Deputy General Secretary Dave Ward.

“It’s time to review pay at the top of the business.”

‘Bottom end’

Royal Mail chairman Allan Leighton defended Mr Crozier’s pay.

“The reason Adam is paid what he is paid is that he runs a big company, he does a bloody great job and I’m glad we’ve got him,” said Mr Leighton.

“Getting good people to run this company is very difficult.

“If you compare his package to FTSE 100 chief executives then it’s at the bottom end, not the top end.”

Mr Crozier is additionally in line for a bonus of up to GBP 1.1m, to be paid out next year if the Royal Mail meets certain performance targets.

He took up the top job at the Royal Mail in 2003.

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FedEx & UPS give peak day package forecasts

Posted by | Nov 1, 2007 | |

FedEx expects 11.3 million packages to move through its FedEx Express and FedEx Ground networks on Dec 17, compared with an average daily volume of 7 million packages, the company said in a press release.

Last year, FedEx predicted 9.8 million packages would pass through its network on its peak day.

Spokesman Howard Clabo said last year’s figure did not include FedEx SmartPost packages — a lower cost service in which packages are dropped off at the nearest post office and then taken the last few miles to customers by the U.S. Postal Service.

Excluding SmartPost packages from this year’s prediction, the comparable forecast would be 10.4 million, a gain of 6.1 percent.

UPS spokesman Norman Black said the Atlanta-based company expects package volumes in its network to reach 22 million on its peak day on Dec. 19.

On average day the world’s largest package delivery company moves around 15 million packages through its network.

Company officials said in early 2007 that during the 2006 peak season the company moved more than 22 million packages on three separate days.

Both companies have warned recently that slowing U.S. economic growth will have an impact on their business.

In September FedEx reported a 4 percent increase in fiscal first-quarter profit but warned that slower growth would act as a drag on earnings in coming quarters.

In a conference call with analysts last week after it also posted a 4 percent increase in quarterly net profit, UPS officials said the company still expects package growth in the crucial fourth quarter but added that growth would be slower than in the past four years.

As in previous years, online retail sales are expected to be a boost for both package delivery companies.

Retail consultant TNS Retail Forward predicted in September that fourth-quarter online sales this year would grow 20 percent to USD 42 billion from USD 35 billion in 2006.

Overall retail sales should grow by just 3.3 percent as the credit crunch is expected to hurt consumer confidence, TNS Retail Forward said.

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Amtrak launches Credit Card facility

Posted by | Oct 31, 2007 | |

Amtrak, the business to business and home delivery parcels operator, is launching a credit/debit card payment option to make it easier for small companies and individuals to use their parcel services.

“We believe this will appeal not only to small businesses but also to people selling on the web or sending goods occasionally,” says Alan Jones, Managing Director, Amtrak. “Customers don’t necessarily want to set up an account but want a quick and easy way to organise sending a parcel.”

The popularity of web auction sites and the growth in the number of people working at home has led to a significant increase in the demand for collection and delivery of one or two parcels from residential addresses.

“Our new service enables people to send parcels without leaving the house – and especially without standing in a queue at the Post Office,“ says Mr Jones. “We also have special services for goods of high value – either cash value or sentimental value – and we anticipate people will use Amtrak to send all kinds of items.”

Amtrak is also a specialist handler for fine wines, and already offers a Personal Express (delivery only to a specifically named person) and Tender Express (for important tender or contract documents) service.

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Royal Mail posts drop in profits

Posted by | Oct 31, 2007 | |

Royal Mail said on last Wednesday 31st October revenue in its letter business was down 78 million pounds (USD 162 million) in the first five months of the current year and annual operating profit dropped by one third.

State-owned Royal Mail, which lost its 350-year monopoly on postal services last year and recently faced strikes by workers, said it expected to be trading around breakeven this year and next due to declining mail volumes and investment.

The group reported operating profit for the full year 2006-2007 year of 233 million pounds, in line with expectations, following a sharp rise in pension fund costs to 722 million pounds from 193 million, falling mail volumes and increased competition.

Royal Mail said it faced making annual payments of 800 million pounds over the next 17 years to cover both its pension deficit of around 5 billion pounds and ongoing contributions.

Royal Mail’s Chief Executive Adam Crozier has said the company desperately needs to modernise, and was investing around 4 billion pounds to do so, to compete and prevent the business from failing.

The firm has plans to reduce its workforce by around 40,000, or 27 percent, by automating mail sorting processes and to fight private competition from Business Post Dutch mail company TNT NV and others.

The growth of email, text messages and the availability of vehicle tax discs and television licences online have also dented profits.

The Communications Workers Union (CWU) said earlier this month over 130,000 staff walked out in a dispute over pay, pensions and shift changes, causing delays and disruption, particularly to firms dependent on mail order business.

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Cabinet considers FDI cap in couriers

Posted by | Oct 31, 2007 | |

This is one mail courier companies would be praying is returned to the sender. A Cabinet note circulated by the department of posts has mooted 49 pct cap on FDI in courier business.

If the proposal goes through, multinationals like Fedex, DHL, UPS and TNT who hold more than 49 pct in Indian ventures will have to pare stake. The draft of the Indian Post Office (Amendment) Bill has another whammy in store for the private sector.

It proposes to make letters, parcels and packets weighing up to 150 gm the exclusive preserve of India Post. Private players will have to charge 2.5 times the tariff specified by Speed Post to operate in this segment.

The proposal to amend the Indian Post Office (Amendment) Act has been revived despite opposition from other government departments and the courier industry. A source said posts secretary I M G Khan has sent a communication on the proposed changes to department of industrial policy & promotion (Dipp) secretary Ajay Shankar.

The proposals specify that a person eligible to seek registration for operating in the mail sector has to be a company in which not less than 51 pct of the paid-up share capital is held by the citizens of India.

The draft Bill has been sent to the Cabinet and, once approved, the government can introduce the Bill in Parliament, source added.

The private courier companies had vehemently opposed the amendments earlier too. “In an era of free economy, if the country is embracing any legislation of such nature, it would send a wrong image internationally and it would also wipe out a vibrant part of our economy,” EICI had said in a communication to telecom minister A Raja.

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