Tag: Domestic

Dutch postal liberalisation law likely to pass in June

Posted by | May 30, 2007 | |

The Dutch parliament will likely pass a law fully liberalising the domestic postal market in June after compromising with the cabinet on the sticking point of labour provisions, the parliament’s official website confirms.

The legislation will open the market for letters under 50 grams next year to TNT NV competitors Sandd and Selekt Mail, a Deutsche Post subsidiary that counts Dutch publisher Wegener NV as a stakeholder.

In a final debate on the subject with Deputy Economic Affairs Minister Frank Heemskerk yesterday, a parliamentary majority came out in favour of liberalisation after a cabinet amendment was incorporated requiring postal companies like Sandd and Direkt Mail to make labour agreements with unions or face government intervention.

Unlike TNT, which has a collective labour agreement, Sandd and Selekt Mail use alternative payment schemes for employees including performance-based salaries measured by total deliveries.

Unions had warned that such schemes could allow companies to pay less than minimum wage and create unfair competition and political objectors had demanded that minimum labour regulations be included in the liberalisation law.

Parliament is expected to vote on the law on June 5.

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Postcomm reviews current licensing rules

Posted by | May 18, 2007 | |

Postcomm, the independent regulator for postal services, is seeking views on the current licensing regime to ensure that it continues to support the development of the UK postal market.

Four years after the market was first opened to competition the current licensing regime has seen 18 new entrants to the market. Confidence in the market has been maintained as mail operators have broadly achieved high standards of service quality and customer focus. However, Postcomm have been sensitive to suggestions that the current licensing arrangements could do more to facilitate market entry for some small and medium sized potential mail operators – and therefore promote the development of choice and innovation for mail users.

Accordingly, the regulator has launched a consultation on proposals to move to a form of less prescriptive licensing for those seeking to enter the postal services market.
– Removing the annual fee – currently GBP 1,000 – for all licensees with a turnover of less than GBP 10 million (licensees with a turnover of more than GBP 10 million pay an annual fee based on its size);
– Reducing the current application fee to GBP 50 for all applicants;
– Removing the requirement for applicants to provide, as part of the application process, information on exactly how they would comply with Postcomm’s mandatory mail integrity code; and
– Removing the requirement for both existing licensees and future applicants to provide a financial guarantee.

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Parcelforce reveals crucial role of IT change in turning loss into profit

Posted by | May 1, 2007 | |

An IT-based streamlining program has helped Parcelforce turn around initial losses of GBP 193m to make a profit of GBP 18m over the past 27 months, Vanessa Leeson, managing director of the delivery company, told the spring meeting of the BCS Elite group.

Following its split from Royal Mail in 1992, Parcelforce embarked on a series of major IT changes to cut costs, improve the delivery rate and reduce its headcount. Leeson told the BCS IT directors group that simplification was key, with every aspect of the organization’s systems subject to rationalization. The network was downsized and the company reduced the total number of systems used from 47 to 21.

A key project was to increase the functionality in the handheld devices used by delivery staff and ensure that they were integrated with the company’s streamlined IT set-up. As part of this, the company introduced a policy for all handhelds, which run bespoke software, to be upgraded every three years.

The IT team also developed a strategy to use simpler systems and make the business more web-focused, said Leeson. It learnt from other organizations along the way, including the military with its “department in a box” mobile system and its satellite technology. This led to a web-enabled parcel tracking system, which lets Parcelforce check that a parcel has arrived at its destination via text messaging. “IT should never be the reason to lose or fail to win business,” said Leeson.

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