Tag: Europe

Union ire at Royal Mail boss pay

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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Skillsmart Retail Analysis: Online retailing potential developments and its impact on people and skills

This analysis explores how the adoption of online trading has introduced new opportunities for retailers and how these might affect those who work in the sector and the skills they may need. It is based largely on secondary sources and commentary from retailers themselves.
We briefly chart how online retailing has moved from being viewed as a minority hobbyist pursuit, to one which is now a mainstream route for retailers.
Like many IT based innovations, the development of online retailing channels presents businesses with a range of new choices. In this sense, the development of the technology is a ‘driver’ helping to shape the future of the sector.
However, culture and politics in companies and of consumers will be complementary drivers and will also shape how the new technology will be applied.
We speculate that on balance the development of online retailing is likely to further increase the depth and breadth of many job roles in the sector.
Within senior managerial occupations, online retail will pose a series of strategic challenges around the role of their online trading platforms and evaluation of their success. Professional and associate professionals will also be affected as online retailing will increase the breadth of activities they have to deal with.
The fulfilment of orders will also lead to new demands. Warehouse systems may increase in their complexity. Many delivery personnel will be expected to offer more than a perfunctory drop off of the item; some might even e expected to offer advice and expertise on the product being delivered.
The blurring of boundaries between online and traditional retailing will also present interesting challenges for store managers, sales and customer service roles. Where online and traditional retail operations operate seamlessly, many employees will require knowledge of the entire range of products and services on offer and skills to carryout a wide range of processes.
Within the retail sector previous developments have focused on reducing errors. It has also helped develop job roles that rely on modest levels of skills. The development of online trading may reinforce this trend.

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Royal Mail practices what it preaches and encourages media integration

Royal Mail has launched an integrated business to business campaign to demonstrate the power of combining direct mail and digital media.

The integrated campaign called “Meet Mr Complete” features direct mail and a microsite both created by Proximity London. It centres on the idea of integration being a more complete way to communicate with customers. Recent research by Royal Mail revealed that integrating digital advertising with direct mail campaigns can increase customer spend by almost 25 per cent.

Meet Mr Complete targets more than 5,000 business people to demonstrate that using digital and direct mail together achieves greater impact with consumers.

Activity begins with a personalised direct mail pack designed to look like a computer desktop. Inside each pack are instructions on how recipients can fold the mailer to create their own origami Mr Complete man. To encourage further engagement with the campaign a unique personalised web address is printed in each mailing which will take recipients through to an individualised Meet Mr Complete microsite.

Once online customers are guided through their own personal site by Mr Complete; an interactive 3D animated character, who demonstrates the benefits of integrating direct mail and digital media. Mr Complete finishes the journey by offering a follow up phone call from a Royal Mail media expert.

The campaign concludes with a final direct mail pack with a hand-crafted Mr Complete origami man personalised with the recipient’s name and reminding them of the positive brand benefits and increased campaign effectiveness that integrating direct mail with their digital offering can bring.

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Amtrak launches Credit Card facility

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

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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