Tag: International

DMA calls for caution over postal review

The DMA has warned the government not to place an “unrealistic burden” on businesses to fund a universal postal service when it publishes its review next year.

Secretary of state for business John Hutton announced the review on 17 December, outlining the government’s commitment to maintain the universal service while investigating the impact of opening the postal market to competition two years ago.

Royal Mail has introduced a range of proposals, such as pricing in proportion and zonal pricing, to help it compete more effectively in the new open market.

It has argued that its competitors have been able to cherry-pick the higher margin business sectors, while it has been hobbled with maintaining an affordable universal service for consumers and providing the final-mile delivery.

However, many of these new ideas impact more heavily on users of business mail, such as the direct marketing industry.

Walsh said he wasn’t sure how the DMA would be involved in the review, although it is a member of the Postwatch trade association forum.

However, he stressed that it is important that business users get involved, noting that the consultation would not include any direct representatives of large mail users.

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UPS Contract with Teamsters Ratified

The International Brotherhood of Teamsters today notified UPS that a new contract covering approximately 240,000 UPS employees has been certified approved and ratified.

The ratification came as five local supplemental or rider agreements received approval in a second round of employee voting. Last month, the UPS National Master Agreement was approved by 65 pct of the voting employees.

The master contract was negotiated nearly a year in advance of the current contract’s expiration on July 31, 2008, and will extend contract coverage to July 31, 2013.

“We are excited to learn that everything now is in place to implement our agreement with the Teamsters,” said Mike Eskew, UPS’s chairman and CEO. “This agreement helps to ensure that UPS is well positioned for success in the coming years.”

The new contract includes wage increases as well as significant contributions to healthcare and pension plans to help strengthen these benefits for employees. The agreement allows UPS to withdraw employees from the Central States multi-employer pension plan and to establish a jointly trusteed, single-employer plan for this group. UPS will make a pre-tax USD 6.1 billion payment to the Central States plan on Dec. 26, 2007, in connection with its withdrawal.

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TNT's Asia Road Network expands into China

TNT announced the expansion of its Asia Road Network into China. TNT thus becomes the first integrator in Asia to operate an integrated road network linking over 120 cities in Singapore, Malaysia, Thailand, Indochina and China across 4,000 kilometres. The road network, which connects Singapore to Nanning, the capital city of Guangxi Zhuang Autonomous Region, and Guangzhou, the capital of the Guangdong Province, will become fully operational early 2008 after completion of the last trials. The Asia Road Network connects to TNT’s international express network in China. Linking it to TNT’s Chinese domestic network will be a next step. This move will eventually allow TNT’s customers to benefit from seamless road connections in the region.

Introduced at the end of 2005, TNT’s Asia Road Network connects Malaysia, Singapore, Thailand and China through the north-eastern border of Vietnam. Boasting 24×7 real-time Global Positioning Satellite (GPS) tracking of TNT’s container trucks, TNT has seen double-digit growth in overall volumes since the launch in 2005. The growth is largely driven by customers moving high-value goods such as electronic, automotive and computing components. The road service is two to three times faster than sea freight and offers customers, significant savings of up to 30 per cent compared to air freight.

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Ireland: Compensation made available for poor postal services

The ‘Complaints and Dispute Resolution Guidelines’ for postal service providers will see this implemented over 20 of Ireland’s 31 postal service providers.

Comreg yesterday issued the guidelines, which cover An Post, but also companies like Cyclone Couriers, Olympus, and Nightline, some of Ireland’s larger courier firms.

The new guidelines do not cover larger delivery firms such as Fedex, DHL and SDS, but this may change when the postal service industry is liberalised under EU laws in 2011 and is opened up to greater competition.

People can now be compensated by postal providers for delays in delivery of over seven days, damage or loss. It also says a postal service provider must display a simply explained complaint and dispute resolution procedure.

This will lay out the timeframe for a complaint to be made, a timeframe for receipt of answer and a guideline to compensation payable, which can be paid back in either cash or a number of stamps.

Comreg has brought in these regulations with the aim of maintaining into the future a “confidence to postal consumers that the postal industry maintains consistent complaints and redress standards”.

The company will have to refund costs and also pay compensation if it is found to be at fault.

The only time these guidelines do not apply is in the case of any form of industrial relations issue, such as a postal strike.

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Axel Springer to take up to 620 mln eur write-down on PIN Group

Axel Springer AG said it expects to write down the value of postal service provider PIN Group AG, in which it holds a majority stake, by up to 620 mln eur this year after talks with the other owner to finance the business failed.

The write-down will have a negative impact on net profit, it said in a statement.

PIN Group will be included in discontinued operations in the company’s full-year results.

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