Tag: Europe

Royal Mail faces threat of watchdog censure in battle over prices

Posted by | Jul 9, 2007 | |

Royal Mail is facing action from the postal regulator after a complaint from DX, one of its rivals, that it had breached pricing regulations.

Postcomm is due to make a formal ruling in the next few weeks, but the regulator has already outlined concerns over a new service that operates in DX’s area.

As the dominant incumbent, Royal Mail is not allowed to lower its prices selectively because that impedes emerging competition. Instead, if it lowers prices it has to offer those prices to everyone. DX argued that it had circumvented this by creating a new service and arguing that this served a niche market, rather than a broad one.

Last year Royal Mail was fined GBP 1 million by Postcomm for failing to ensure that it did not gain an unfair commercial advantage over its competitors in the “access to the last mile” market.

The move came after complaints from three of Royal Mail’s competitors at the time – Express, the dairies business, TNT and UK Mail – who said that they had been hampered in getting uniformly priced access to the final-mile delivery, which is carried out by Royal Mail postmen.

Two years ago the regulator found that Royal Mail’s advertising had breached competition regulations.

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Palletline member scoops top industry award

Posted by | Jul 9, 2007 | |

Halifax-based Expect Distribution, a leading member of Palletline plc, the UK’s most experienced palletized freight distribution network, has scooped the road haulage industry’s most prestigious prize – the 2007 Motor Transport Awards Haulier of the Year award.

The award recognizes the outstanding haulier or distribution company of the year – companies have to show not only strong financial results, but a strong all-round commitment to professionalism and customer care, and active measures taken to improve service levels.

The ceremony for the awards, which since 1988 have recognized excellence in the field of logistics and distribution, was held at the Grosvenor House Hotel in Park Lane, London.

A key factor in Expect’s success was the impact of a major GBP 200,000-plus rebranding exercise in the first quarter of 2006 which saw the company change its name from Pennine Parcels to Expect Distribution to better reflect the nature of its business.

Based in Listers Road, Halifax, Expect Distribution (www.expectdistribution.com) employs 125 people and owns and operates 52 vehicles. Established in 1988 as a parcel delivery service, the company’s work with palletized consignments grew so rapidly that this has now been its core business for a number of years. It is the largest inputter into Palletline, for whom it covers the LS, WF, HX, BD, HG, HD and OL postcode areas, inputting more than 2,500 pallets each week. Indeed, since becoming a founder member of Palletline in 1992, its annual turnover has rocketed from GBP 350,000 to around GBP 10 million, with growth of 16 pct in the first half of the company’s current financial year.

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Germany's Sparkassen in talks with Pin Group for possible in-branch mail service

Posted by | Jul 7, 2007 | |

Germany’s Sparkassen savings banks are currently in talks with Luxembourg-based carrier service Pin AG over a possible cooperation which may include offering postal services at Sparkassen branches, reported Spiegel magazine, citing a spokesman for the DSGV, the German savings bank association.

‘It is true that on a regional level talks are going on about a possible cooperation,’ the spokesman told the magazine.

At this point it is still open as to what form the agreement could take, but the report speculated that the DSGV might be looking into offering a service to compete against rival Deutsche Postbank AG and its parent company Deutsche Post AG, which offers customers postal services at its branches.

The report said it was also not clear whether Sparkasse or Pin AG employees would operate such a service.

Earlier this week, German media house Axel Springer AG bought a controlling share in Pin AG, raising its holding in the mail service provider to 71.6 pct from 23.5 pct.

Pin AG chief executive Guenter Thiel has said that his company plans to have a branch network as large as that of Deutsche Post’s by mid-2008.

The company handles about 2.3 mln mailings a day and expects to more than double its annual sales this year to 350 mln eur.

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The battle over postal services continued last week as SLP-CISL (Italy) hosted a high profile convention on the issue

Posted by | Jul 7, 2007 | |

Several hundred delegates cheered the words of SLP General Secretary Mario Petitto as he vowed to continue the fight against reckless liberalisation of one of Europe’s most treasured services. Among the speakers, including Poste Italiane representatives, parliamentarians and other stakeholders, was the Italian Minister for Communications, Paolo Gentiloni, who reported that the fight in the European Council was far from over as governments including his own and those of Spain, France, Belgium and Poland seek to curb the poorly considered, neoliberal overtures of the European Commission. Mr,. Gentiloni claimed that the legal uncertainty that would be created by the Commission’s new proposals on financing for the universal service obligation could threaten the guaranteed services currently afforded to all EU citizens.

Speaking on behalf of UNI, Sam Ironside explained the history behind the current debate, including the failure of stakeholders to prevent the concept of ever-greater liberalisation way back in 1994. Ironside called on all UNI affiliates to follow the excellent example of SLP in engaging their ministries ahead of the next Council discussions. He also challenged Italian and all affiliates to take the fight for terms and conditions in the sector to the front line – the new competitor companies and the integrators, such as DHL and TNT. This, he argued, was the only way to fight the constant pressure on salary levels throughout the sector.

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