Tag: Postwatch

One letter in four comes via Royal Mail rival (UK)

Posted by | Jul 8, 2008 | |

Rivals to Royal Mail now handle one in every four letters and are poised to increase volumes further, The Times has learnt.
It is understood that Royal Mail now carries out the full process of collection, sorting and deliver of three out of every four letters posted, as against four out of five last year. This follows an exodus of blue-chip bulk mailing customers to rival operators such as TNT and Business Post.
More customers may have been pushed to quit Royal Mail after last year’s industrial action despite competitors still having to use Royal Mail’s infrastructure and postal staff for the “final mile” delivery.
Royal Mail’s business could shrink further if rivals continue to grow. TNT, one of its two main competitors, expects to handle 2.4billion items of mail this year. Business Post, which does not make specific forecasts, said it expected to exceed that amount. Last year TNT handled 1.8billion items out of a total annual postbag of 20billion and Business Post
TNT’s prediction of a 33 per cent increase in mail volumes comes as the company is building up local business as well as targeting large national customers such as utilities and banks. Nick Wells, Managing Director of TNT’s UK mail business, said the business was putting resources into five regional centres.
Royal Mail is paid by rivals for the “last mile” delivery. It claims it is paid too little although its competitors say that its prices are too high.
The loss of business to rivals comes as a review commissioned by the Government looks into the future of the state-owned group. There are growing worries from Royal Mail, Postcomm, the industry regulator, and the main postal union, that Royal Mail is facing dire financial problems.
The Hooper review into Royal Mail is scheduled to set out recommendations to the Government. The regulator has said that Royal Mail needs an injection of private equity. But even if stakeholders backed such a move, it is not clear what interest there would be from private equity because of Royal Mail’s huge pension deficit. It currently stands at GBP 3.4billion but could double after an actuarial review.

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Post Office card Account (POCA)

Posted by | Jun 30, 2008 | |

The Counters Advisory Group (CAG), a group of organisations committed to promoting the needs of post office customers, chaired by Postwatch, has written today to James Purnell, the Work and Pensions Secretary to support Post Office Ltd being awarded the contract for the replacement of the POCA. The group feels very strongly that customers who want to collect their pensions and benefits from their post office should continue be free to do so.

It is also clear to the group’s members that failure to award the contract to Post Office Ltd would have a significant impact on the number of post offices that would remain in business.

The full text of the letter can be viewed at www.postwatch.co.uk

Notes To editors

1. CAG is chaired by Elizabeth Hodder.

2. The following organisations are members of CAG:

Age Concern England;

Citizens Advice;

Commission for Rural Communities;

Federation of Small Businesses;

Help the Aged;

Local Government Association;

National Association of Local Councils;

National Consumer Council;

National Federation of SubPostmasters;

National Federation of Women’s Institutes;

Postcomm;

Public Utilities Access Forum;

Rural Shops Alliance;

Royal National Institute of Blind People;

Townswomen’s Guild; and the

Village Retail Services Association.

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Post offices may be reopened under council subsidy plan (UK)

Posted by | Jun 15, 2008 | |

An agreement between the Post Office, the Government and local councils means that, in theory, every one of the 2,500 branches earmarked for closure under a cost-cutting plan could be saved.
Ministers ordered cuts to the network to reduce its GBP 150 million-a-year subsidy. However, councils have been looking for ways to avoid closures in the face of a growing public backlash.
The first post offices to be reprieved are in Essex, where the county council is expected to announce in the next 10 days that it has saved at least 15 of 31 branches closed this year.

The council has set aside up to GBP 1.5 million for the scheme. Some post offices will be reopened on the same premises, while pubs, cricket clubs, libraries and shops will become home to a post office in other cases.
The pilot has attracted interest from councils, with 100 local authorities contacting the Post Office. Half of those are already in talks to follow suit.
However, Alan Cook, the managing director of the Post Office, said the obstacles had been overcome. “We have got to the point where we have established a model that will work for local authority funding,” he said.
The news was welcomed by the postal watchdog. Howard Webber, the chief executive of Postwatch, said: “I feel qualified joy that there could be any extra post offices which offer more services to customers, providing it does not have a damaging impact on the post offices that are remaining in the network.”
Last year, the Government ordered Royal Mail, which owns the Post Office, to close 2,500 branches. By the middle of last week, 764 branches had been shut and 41 saved.
Earlier this month, post office managers told a Commons committee that a further 4,000 branches could be closed.

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The Postal Operator formerly known as Royal Mail (UK)

Posted by | Jun 6, 2008 | |

Following an overwhelming rejection of pension reform by staff at Royal Mail earlier this year, and rumour that the government may be considering selling off parts of the business in an attempt to rescue what many now regard as a failed deregulation plan, some inside the union say that the Communication Workers Union is preparing for a full confrontation with Gordon Brown. Timing may be factor here though.

Next week is of course the CWU Conference, and those jostling for a better position within the union will be far more vocal than they might otherwise be, with stirring speeches aimed at raising the profile of branch leaders and just about anyone interested in pushing Hayes off the top of the heap. The more militant end of Royal Mail’s workforce, notably from Liverpool, were furious that having brought Britain’s postal network to a standstill, Hayes was asking union members to accept most of the proposals put forward by Royal Mail bosses and return to work. With it being conference week, CWU leader Billy Hayes is expected to deliver more fighting talk to demonstrate that he still has the strength of character to remain in the job, but not everyone thinks he has. Some are even threatening to turn up at the conference and tell Hayes what they really think of him.

On the other side of the coin, the Labour party depends rather heavily on union money and already effectively bankrupt, the union is likely to push the Labour party against the ropes to try and scupper attempts to part-privatise Royal Mail.

Trying to establish just how much of Royal Mail’s downturn in business is due to the rise in email use, increased competition, or lack of confidence in the wake of strike action, isn’t easy, but postal deregulaton has undoubtedly made things worse. An independent review this year, in combination with input from Postcomm, Postwatch, and rival operators, made it clear that deregulation was having little impact in terms of increased quality and choice for small business and consumers and the prospect of postal companies fighting it out on deliveries is practically zilch.

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Royal Mail seeks Postcomm extension

Posted by | Jun 2, 2008 | |

Royal Mail has asked Postcomm to extend the suspension of the bulk compensation scheme for another year amid fears of further industrial action in the future.

The request comes on the back of poor performance figures released last week by Royal Mail. The postal services giant failed to achieve nine of the 12 minimum service targets in its licence, but claims the poor service levels were due to industrial action last summer.

Royal Mail only achieved an 85 per cent service level on first class mail against a target of 93 per cent. Last year, it achieved 94 per cent service levels for first class mail.

Postcomm is now consulting its stakeholders on whether to extend the suspension of compensation.

Speaking about the missed performance targets, Postwatch chair Millie Banerjee says: “What the figures do not reveal is what effect the strikes have had on the posting habits of social and business customers. Many of these customers had to find other ways to communicate. This will have reduced postal volumes, which will in turn damage Royal Mail’s financial stability for years to come.”

Average mailing volumes have been severely affected as a result of last year’s strikes, with daily volumes down from 84 million items to about 80 million.

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