Tag: Mail Services

Postal Strike Threatens Businesses

The Israel Postal Service petitioned the Tel Aviv Labor Court to instruct its striking workers to resume work. In an initial ruling, the court instructed the workers not to intensify their strike. The employees’ union announced that it will honor the verdict but will continue the present work stoppage in its current intensity.

The union announced that it will decide upon its further actions after the next Labor Court session on the matter, which is scheduled for Sunday, and will determine its moves based on what the court decides.

Regular and registered mail are not delivered anywhere outside Israel’s urban centers (except in the Gaza Belt); ownership transfers for cars are not being carried out; diplomatic mail is not being delivered and government offices including the Knesset are not getting mail.

Regular and registered mail are not delivered anywhere outside Israel’s urban centers; government offices do not receive mail; diplomatic mail is not being delivered.

The Postal Service’s clients in the “periphery” are hardest hit. Residents of the rural Regional Councils nationwide have not been getting mail for three weeks, and businesses in the periphery are also suffering great economic hardship.

The postal workers demand a governmental “security net” for them, as the post services undergo privatization. The “security net” should include a commitment not to fire any employees beyond the 450 workers which the union agreed would retire as part of the process in which the Postal Service becomes a registered company. In addition the “net” should make sure that none of the existing wage agreements is changed.

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Catalogers debate the value of mail preference services at ACMA forum

Cataloger Crate & Barrel’s John Seebeck, direct marketing business director, said industry self-regulation is the best approach to the potential threat of do-not-mail legislation during the American Catalog Mailers Association (ACMA) forum in Washington, DC on June 26.

Seebeck was joined by representatives from Gardener’s Supply Company, US Postal Service, the Direct Marketing Association (DMA) and nonprofit opt-out service Catalog Choice.

Do-not-mail legislation is one of the leading threats to the USPS’s business, said Marie Therese Dominguez, VP of government relations and public policy for the USPS.

The legislation is being pushed by consumer’s environmental concerns, as well as general annoyance with the amount of direct mail received, added Jerry Cerasale, SVP of Government Affairs for the DMA. For that reason, it’s important for marketers to listen to their customers regarding their mail preferences, he said.

The DMA, which has provided a mail preference service for more than 35 years, does not want to be a middleman, Cerasale said. It’s better if the customer and mailer communicate with each other directly, he added.

The mail industry has already been hit hard with last year’s rate increase, in addition to the current economic climate and the rising cost of paper. These factors have made Crate & Barrel a better marketer, Seebeck said. The company has cut circulation and the page count of its catalogs, and changed its contact strategies, he added.

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Royal Mail launches dedicated production helpline (UK)

Royal Mail is continuing to demonstrate its commitment to the direct marketing industry by launching a dedicated production helpline for production managers.

The initiative, manned by experienced production specialists, will offer over the phone support to agencies requiring immediate answers to production issues, including:

• Quick problem solving – effective solutions for postage weight issues, difficult formats and how to save money on P&P

• Instant technical advice – over the phone answers on pricing of items, Freepost artwork approval, PPI etc

• Extra mailing services – help with campaign management, Sameday service and approval for mail campaigns

Tim Hamill of Royal Mail said: “We are launching this new helpline in response to the feedback we have received from direct marketing agencies over the last few months. Print production is a tough job requiring answers to niggling questions on an ongoing basis. Through the helpline we want to relieve some of this pressure and really add value to our client relationships.”

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Erik Olsson resigns from Posten AB

Erik Olsson, President and CEO of Posten AB, and proposed President and CEO for the merged company with Post Danmark, leaves his position immediately due to lack of confidence from the Board.

Lars G. Nordström is appointed President and CEO of Posten AB. He will also lead the task of preparing for the integration with Post Danmark. Lars G. Nordström is a member of the Board of Nordea, where he was President and CEO until 2007. He is also a member of the board of TeliaSonera and VikingLine.

The process to recruit a permanent President and CEO will begin immediately.

Accord to contract, Erik Olsson has the right to 12 months notice in case of dismissal. He is also entitled to a severance pay equal to one year’s salary. The severance pay will be deducted against employment income. Olsson will be at the company’s disposal during his period of notice.

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Postcomm: Royal Mail must reduce costs further (UK)

Nigel Stapleton, Chairman of Postcomm the UK postal industry regulator, said that Royal Mail must make greater efforts to become more competitive and not look to Postcomm for a relaxation of price regulation.

In the 2007/2008 annual report, Mr Stapleton said that most people firmly believe that mail can hold its own, despite the rise in email and internet use, but that all mail operators need to raise their game in terms of price competitiveness, service quality and product innovation.

He said that the GBP 100 million loss on the universal service was of great concern as well as the break-even position overall from its addressed letters business. He said Postcomm had relaxed a key feature of the current price control, thereby allowing bigger increases to the prices of certain products where currently prices are below their fully allocated costs. Postcomm was also minded to suspend during 2007/08, the compensation that would otherwise be due from Royal Mail to its customers when quality of service drops below the licence standards. However, he said that Royal Mail needed to be more innovative and reduce costs further to retain customers:

He drew attention to sporadic industrial action in 2007, saying that two thirds of the total working days lost in the UK through strikes were attributable to the series of stoppages at Royal Mail while the company sought to gain support from its workforce for the initiatives required to become more cost competitive.

On an optimistic note, he pointed out that more mail users are now being offered a choice of using either Royal Mail or one of the new entrants to the market.

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