Tag: Domestic

CWU presents terms to postal executive to settle dispute with Royal Mail

Posted by | Oct 17, 2007 | |

The Communication Workers Union (CWU) said it has presented terms to the postal executive, an elected body of CWU members, to settle the dispute over pay and job cuts, following its talks with Royal Mail’s chief executive Adam Crozier.

The TUC general secretary Brendan Barber has now invited both parties for a further meeting so that the CWU can clarify the remaining outstanding issues, CWU said.

As a result of the latest developments, the current round of industrial action has been suspended.

More than 100,000 postal workers disrupted mail services earlier this month by staging two 48-hour walk-outs in opposition to Royal Mail’s modernisation plans, which include cutting 40,000 jobs, reforming the company’s pension scheme and limiting pay rises to 2.5 pct.

Royal Mail had won an injunction stopping the latest strike, which was scheduled to start on Oct 15.

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UK postal workers union suspends strikes as it considers Royal Mail offer

Posted by | Oct 16, 2007 | |

The Communication Workers Union said it has suspended industrial action planned for later this week, as its executive continues to discuss the agreement reached with Royal Mail late on Friday.

Drivers and workers at the Heathrow sorting centre were due to walk out in a series of 24-hour strikes in the latest stage of their dispute over pay and job cuts.

Earlier this month deliveries were severely disrupted when more than 100,000 postal workers staged two 48-hour walk-outs in opposition to Royal Mail’s modernisation plans, which include cutting 40,000 jobs, reforming the company’s pension scheme and limiting pay rises.

The union said its executive was continuing to discuss the outline agreement from Royal Mail, which is thought to include a 6.9 pct pay rise over 18 months.

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Suffering SMEs turn to alternate mail services

Posted by | Oct 16, 2007 | |

Small businesses have been hit hard by the postal strike and are now seeking out private alternatives to Royal Mail, a British Chambers of Commerce survey has revealed.

The snap poll, conducted over the weekend, found that 88pc reported the strikes had “a significant impact” on their business, with cash flow and loss of sales particular problems.

Of those affected, 55pc said they were now more likely to use private delivery companies.

The BCC said the figure reflected the anger felt by small businesses at the impact the postal strike.

The problem for small firms is that their options are limited by the fact that the Royal Mail’s biggest competitors, such as TNT, Business Post and DHL, are at the same time customers.

Only Royal Mail does the ‘final mile’ bit of deliveries meaning small firms, like the rest of the population, are in the words of one business owner, over a barrel.

Mr Frewin says the last 25 years has seen a consistent rise in the volume of mail. Over the last 18 months that figure has declined. “Is it a blip or a sign of long-term decline? Our concern is that what started with a one-day strike and now two-day strikes, will continue. The worry is that the postal industry will be brought to its knees.”

Talk is that TNT might be just the business to give Royal Mail a run for its money when it comes to ‘final mile’ delivery, but the discussion about another provider stepping in to compete isn’t new.

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Week to clear post backlog after strike

Posted by | Oct 16, 2007 | |

The postal strikes have left 120 million letters and parcels stranded in sorting offices, with the post watchdog warning that the backlog will take until next week to clear.

The news came as it emerged that more than of half of small firms want to stop using the Royal Mail after the strikes which have cost the London economy alone more than GBP 300 million.

Sources at the Royal Mail said there were one and a half days worth of post — 120 million letters and parcels — stuck in the system after last week’s five-day strike and unofficial stoppages.

This could take “several days” to clear, the source said.

However Postwatch, the industry watchdog, estimated the backlog at 200 million letters and parcels. This would take a week to clear, it said. Andy Frewin, a spokesman, said: “We would expect things to be back to normal next Monday if they work as normal this week.”

A survey by the British Chambers of Commerce found that 55 per cent of small firms are now more likely to use private delivery companies. Natalie Evans, the head of policy, said: “This result really hammers home the damage that this dispute has done to Royal Mail.

“Small businesses rely on a decent post service and have been let down badly over the past few weeks.”

The survey of more than 250 company directors showed that almost half thought the strikes had cost their firm at least GBP 1,000 each.

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Royal Mail begins ad agency review

Posted by | Oct 15, 2007 | |

The Royal Mail has launched a multimillion pound statutory review of its brand strategy, advertising and direct marketing agency roster.

Current incumbents Abbott Mead Vickers.BBDO (above-the-line), Wolff Olins (branding) and Proximity (DM) will all be invited to repitch for the four-year contracts.

The review is being led by Tom Hings, director of brand marketing at Royal Mail, and comes amid the company’s very public disputes with the Communications Workers Union over plans to modernise operations.

National postal strikes were officially stopped last week but talks continue over pay, pensions, job cuts and working practices.

Last week, the Direct Marketing Association announced plans to significantly reduce the wastage from direct mail in response to a report by the Environment Council into stemming the tide of ‘junk mail’.

The company is facing stiff competition from other postal carriers and the growing reach of digital, resulting in its first financial loss in six years in August.

Royal Mail awarded its GBP 18 million media planning and buying business to OMD in April, after a two-way shoot-out with 10 year incumbent Carat.

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