Tag: Royal Mail

Consultation On Changes To Post Office Network – Post Office Ltd proposes two additional branches for closure in the Bristol and Somerset area

Posted by | Jun 6, 2008 | |

Post Office Ltd recently confirmed decisions reached following local public consultation into its Bristol and Somerset area plan. As a result of the feedback received, Post Office Ltd amended its original proposal and decided not to proceed with the closure of three branches at Bear Flat, Lower Weston and West End.

In order to ensure that the planned future network can be supported by the available funding from Government and meets the criteria it has set, including the requirement that no part of the UK is advantaged or disadvantaged relative to other areas, Post Office Ltd is now proposing the permanent closure two branches at Southgate and Hinton St George. A six week public consultation on these new proposals will begin on 17 June.

In proposing these branches for closure, Post Office Ltd has taken into account that customers would be able to access Post Office® services from nearby branches.

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Gordon Brown faces union pressure to save Royal Mail from privatisation (UK)

Posted by | Jun 6, 2008 | |

Gordon Brown is being pressured by one of his main union backers to make a fresh commitment to safeguard the Royal Mail from privatisation or risk losing its financial support.

The Communication Workers Union (CWU), which represents postal workers employed by the state-owned operator, will vote at its annual conference next week on whether to sever its affiliation with the Labour Party.

If they vote for the move, it would spell the end of a six-figure annual funding source vital to Labour.

It would be a big blow to the party, as donations have dwindled significantly since the cash-for-honours scandal and low opinion poll ratings, and it now relies heavily on union support to cover its debts.

In the first quarter of this year, 88 per cent of the cash donations made to the party came from the unions.

To make matters worse for Labour, the CWU is not the only trade union proposing a disaffiliation motion during the conferences this summer. Similar motions are being put forward by the GMB and Unison, a sign that there is increased dissatisfaction.

Ministers are under growing pressure to consider allowing Royal Mail to raise money from outside sources. But the CWU has told the Financial Times that the commitment Labour made in its last manifesto to keep Royal Mail in public ownership was “one of our core objectives.”

When asked if the union might demand that the Prime Minister renews his pledge in Labour’s next manifesto in exchange for its continued support a CWU official answered: “Absolutely”.

Francis Maude, the shadow cabinet office minister, said: “This shows that trade union barons call the shots. Labour, who are so dependent on trade union funding, are being held over a barrel and this is extremely unhealthy for a parliamentary democracy.”

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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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Post Office Network must be sustainable warns The National Federation of Subpostmasters (UK)

Posted by | Jun 3, 2008 | |

The National Federation of Subpostmasters says it welcomes a report from the Business & Enterprise Committee which acknowledges the threat to the post office network if subpostmasters lose the right to handle state pensions and benefits.

The Committee’s report on the future of the post office network backs claims by the NFSP that the loss of the Post Office Card Account (POCA) would have a devastating impact.

The Federation has warned that up to 3,000 post offices could be forced to shut if the contract to run the successor to the current POCA contract is lost. A decision on who has won the POCA 2 tender is expected this summer.

Of the 24 million visits made to post offices every week, 6.5 million are made by POCA customers, highlighting the importance of the POCA contract to subpostmasters.

The NFSP also backs concerns raised by the Committee on the threat to the post office network from proposals to break up Royal Mail Group.

With income from Royal Mail transactions making up the largest part of subpostmasters pay, the Federation is concerned about the effect this break up would have on this vital source of income.

In addition, the NFSP supports the Committee’s demand for the need to safeguard against further post office closures after Network Change.

The Federation has reluctantly accepted the closure of up to 2,500 post offices under Network Change in order to achieve a viable network, but states that there should be no further closures.

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