Tag: Postwatch

Royal Mail could face an unlimited fine for failing to meet 80 per cent of its delivery targets, it has emerged. The group failed nearly twice as many performance targets as last year, meeting only three out of 16 targets set for the period covering April 2002 to March 2003. According to Postwatch, the postal services watchdog, Royal Mail missed the minimum performance levels for the delivery of first and second class post and also failed to meet targets for its heavily advertised special delivery service. The poor record means that Postcomm, the postal regulator, could levy an unlimited fine on the company. “We will consider what action we will take, including financial penalties, at the next postal commissioner’s meeting,” Postcomm said.

Royal Mail Group today announced, as expected, an improving financial performance and predicted a return to profit in 2003/04. They also announced continued growth in mail volumes and their best industrial relations for over 10 years. At the same time the new Chief Executive admitted, (in advance of announcing the details next week) that it was disappointing only 3 of the 15 performance targets were met. One of the targets missed was for the flagship 1st class stamped and franked service. Royal Mail revealed that only 91.8% of 1st class letters arrive next day. This means that over a million letters per day are not arriving on time. Peter Carr, Chairman of Postwatch, commenting on the announcement said, “This is very good news and the new management should be congratulated – in particular they should be applauded for a year without industrial conflict. “Customers will remain concerned that, although improving, standards of service are still short of target at a time when prices have increased”.