Tag: Royal Mail

DX Group – Royal Mail VAT advantage stifles competition (UK)

Posted by | Apr 30, 2008 | |

The DX Group has reminded Postcomm that the VAT exemption applied to Royal Mail is, in their view, continuing to stifle competition.

In response to Postcomm’s Strategy Review, Michael MacClancy, Head of Regulation at DX said:

“Royal Mail’s VAT exemption will continue to tip the playing field against end to-end entrants for the foreseeable future. The VAT exemption extends to positive discrimination in favour of so-called access competition over end-to-end competition. If consolidators such as TNT and UK Mail use Royal Mail for final delivery then they can take advantage of the recently introduced agency agreements to minimise VAT liability for their customers. If they use another operator (such as DX) they must charge VAT.”

“The VAT exemption not only places entrants at a disadvantage in comparison with Royal Mail, it also gives TNT and UK Mail an advantage in comparison with other operators. Furthermore, as we have argued previously, access is a very limited form of competition with limited economic benefits. If Postcomm really does wish to create the right conditions to enable a further withdrawal of sector specific regulation it will have to find a way of promoting end-to-end competition that will apply pressure along the whole of Royal Mail’s value chain.”

“Postcomm should avoid further tilting of the market towards the access model. We note that there are substantial differences between the postal markets of the UK and USA, not least of which are the statutory monopoly over delivery enjoyed by USPS and a workshare pricing mechanism that appears to leave USPS with a considerably higher proportion of the revenue than the UK equivalent.”

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Subpostmasters agree Post Office pay deal (UK)

Posted by | Apr 28, 2008 | |

The National Federation of SubPostmasters (NFSP) has agreed this year’s pay deal for subpostmasters with Post Office Ltd. Agreed at an earlier stage in the year than ever before, the remuneration changes will take effect with subpostmasters’ April 2008 pay.

Subpostmasters will shortly receive a letter from NFSP General Secretary George Thomson and Post Office Ltd Managing Director Alan Cook, detailing the new arrangements.

The NFSP issued a Branch Secretaries’ Circular on the 22nd of this month, giving some initial information on the new remuneration arrangements. NFSP members can access this on the News To Branches page within the members-only section of the website.

NFSP says that Post Office Ltd will then issue a pack containing full details on the new arrangements to all subpostmasters in due course. Members will also be able to download these from the “Pay” section of the NFSP website as soon as they become available.

The forthcoming May edition of The Subpostmaster will also provide further information to members on the pay deal.

NFSP members wishing to enquirie about the forthcoming changes to their remuneration should contact POL’s HR Service Centre or their NFSP Executive Officer in the first instance.

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Post Office launches new Fiveyear Saver

Posted by | Apr 28, 2008 | |

The Post Office announced the sixth issue of its Fiveyear Saver – a no risk, fixed-term deposit bond – which guarantees returns over a five year period with the benefit of further growth potential linked to the FTSE 100-Index.

The Fiveyear Saver offers a dual investment system, which is ideal for investors made cautious by the recent stock market jitters. As a result customers who take advantage of this great offer – which is open from 28th April 2008 and closes on 28th June 2008 – will see their money managed in two ways:

– Half of their deposit earns a very competitive 5.5 per cent gross/AER per annum for the five year fixed term period
– The other half benefits from a 50 per cent return on any increase in the FTSE-100 Index over the five year period. Customers’ original deposits are guaranteed should the FTSE-100 Index fall.

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CWU – Fight Back Over Royal Mail Pension

Posted by | Apr 27, 2008 | |

Following a meeting with senior field officials, the Communication Workers Union is to begin a campaign on the 5th May to highlight what it sees as government and Royal Mail policy failures and the effect that these policies have had on postal worker pensions.

The pension fund currenly has a deficit of around GBP 3.4bn, and Royal Mail plans to clear the deficit by paying into the fund over a period of up to 17 years as well as paying in an extra GBP 270 million this year, an amount it says, that will increase with inflation each year.

The normal retirement age is to be extended from age 60 to 65 with effect from 1 April 2010, pension calculations have now shifted from a Final Salary to a Career Salary Defined Benefit arrangement as of 1st April 2008, meaning that only pension earned in respect of service from 1 April 2008 would be affected by the change. Pension earned prior to this date will still be linked to final pensionable pay on the date the employee leaves or retires. The existing Pension Plan was closed to new members on 31 March 2008.

Two union ballots, one of Royal Mail managers conducted by the union ‘Unite’ and a subsequent ballot of workers, held by the CWU in March, showed an overwhelming rejection of the changes to pensions.

Although both the CWU and CMA/Unite had agreed that changes were needed, the CWU maintains that Royal Mail brought in the revised pension without final discussion with the union and employees and that Royal Mail had not fully explored a options put forward by the union. It now plans to put pressure on government to reverse changes to pensions by writing to and speaking with MPs and political bodies.

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New Start for Parcelforce (UK)

Posted by | Apr 24, 2008 | |

Parcelforce Worldwide is launching a communications campaign with design work by Start Creative, in an attempt to increase the number of businesses setting up Parcelforce accounts.

The designs will be used across all of its marketing collateral including posters, fliers, mail packs and on-line promotions.

Shirley Clancy brand and campaign manager at Parcelforce says half a million packs designed by the London consultancy are being sent out in a mail campaign which targets the business market and is set to run from April through to June.

She continues that the designs are based around the notion of ‘we give you the world’ and include a branded wall map.

Start was appointed to work on the campaign in March after the consultancy took part in a three-way pitch.

The consultancy has an existing relationship with Royal Mail.

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