Tag: Royal Mail

Royal Mail fights back over zonal pricing plan

Posted by | Nov 29, 2007 | |

Royal Mail has mounted an aggressive defence of its proposed zonal pricing scheme, claiming Postcomm’s rejection of its original plan was ‘fundamentally flawed’.

The 44-page response comes five months after Postcomm threw out the first proposal (precisionmarketing.co.uk) but includes only a few minor amendments. Royal Mail is sticking to its guns – the main tenet of its argument is that increased competition in the postal market is allowing private operators to cherry-pick areas where it is cheaper, and therefore more profitable, to deliver mail.

It has put forward a strong legal argument, claiming Postcomm has not “undertaken a competition economics assessment of the application” and that its stance is “inconsistent with EU and UK competition law on discriminatory behaviour”. It continues: “This is a fundamental flaw in Postcomm’s consultation proposal which Royal Mail believes is legally incorrect.”

Under zonal pricing, brand-owners will pay more for deliveries of items in many rural and some urban areas. Royal Mail maintains that the move is in line with its aim to make its services ‘cost-reflective’.

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EU approves Government funding of Post Office in the UK

Posted by | Nov 29, 2007 | |

Government funding to the Post Office worth more than GBP 600 million was approved by the European Commission today.

Brussels has the power to block state aid it considers breaches EU rules on fair competition.

But EU Competition Commissioner Neelie Kroes said the UK government’s cash backing for the UK post office network satisfied the rules for aid to support national public services.

“I am very aware of the importance of the post office network and of the services it provides” she said this afternoon.

“This aid will enable the network to continue to provide those services under the new terms defined by the UK Government”.

The Post Office, now a subsidiary of the Royal Mail, runs about 14,000 post offices throughout the UK, the majority separate businesses contracted out to sub-postmasters.

Last July the Government announced funding over three years starting next April of GBP 634 million, to help cover the cost of loss-making parts of the service.

And although the funding has been approved today, the Commission is still conducting an inquiry launched last February into wider Government funding arrangements for Royal Mail totalling more than GBP 2.5 billion.

“The measures authorised today are separate and concern only the compensation of costs specifically incurred by Post Office Limited,” said a Commission statement.

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Post Office (UK) confirms branch closure decision making approach

Posted by | Nov 28, 2007 | |

Post Office Ltd confirmed the approach it will take to finalising decisions regarding branch closures and other changes to existing branches following the Local Public Consultation process which is now underway in some parts of the UK.

During each public consultation significant correspondence is received from stakeholders and information arising from this correspondence is carefully considered against prescribed Government criteria and factors when final decisions are made. Additionally, Post Office Ltd has set up with Postwatch, the consumer body representing customers, a three stage review process for these decisions, with increasing seniority of the respective management teams participating in each stage, culminating in a member of Post Office Ltd’s board and the Postwatch Chair (or their appointed deputy).

Furthermore, after stage 3, Allan Leighton, Chairman of Royal Mail Group, will review any unresolved cases at the request of Postwatch.

Allan Leighton said, “Taking the decision to close any Post Office branch is always exceptionally difficult. I know it will always cause concern to many of our customers. We are absolutely committed to examining the most difficult decisions at the highest level, to make sure that all the information available has been considered and that the criteria set by the Government have been met.”

Pat McFadden, Minister of State for Employment Relations and Postal Affairs, commented, “I welcome this development to Post Office Ltd’s consultation review process. Allan Leighton, as chair of the Royal Mail Group and the most senior voice in the Company, will now act as final arbiter in the case of particularly controversial and contested closure decisions which Post Office and Postwatch cannot resolve bilaterally.

This demonstrates how serious the Company is about the proper handling of what is necessarily a difficult process.”

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Post Office (UK) supports world aids day with launch of limited edition phone card

Posted by | Nov 28, 2007 | |

The Post Office is proud to be supporting World AIDS Day on 1 December with the launch of a limited edition red ribbon phone card. 50 per cent of the profits from the sale of the card will be donated to the National AIDS Trust.

The theme of this year’s World AIDS Day is ‘Let’s Get Talking’ and it is estimated that on 1 December, people will talk for over 800 hours on the Post Office’s® International Phone Cards.

The Post Office wants to offer customers the option of cheap and easy calls abroad but also give them the opportunity to show their support for those affected by HIV and AIDS. The Post Office is hoping this partnership will help to break the silence about HIV and AIDS in the UK and across the globe.

Nick Gittens, Post Office head of corporate responsibility, said: “By offering these services, we are making it easy for our customers to do their bit for World AIDS Day. By simply choosing the unique GBP 15 international phone card in the weeks running up to World AIDS Day, our customers will have contributed to the National AIDS Trust and shown their support for the millions affected by HIV and AIDS.”

As well as benefitting from low cost calls to destinations across the globe, on World AIDS Day customer will be able to call China, Hong Kong, Japan and Singapore for free between 12noon and 12midnight. And on 2nd December, customers will be able to call Poland and South Africa for an unlimited time for only 15p.

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UK postal workers back peace deal

Posted by | Nov 27, 2007 | |

Postal workers have overwhelmingly backed a deal on pay and conditions finally ending their long-running dispute.
The Communication Workers Union (CWU) said its members voted by 64% in favour of an agreement and will now receive a pay rise of 6.9% over two years.
Turnout in the ballot was also 64%. The union said it would now be at the heart of implementing changes to working practices in the Royal Mail, one of the issues at the centre of the bitter dispute.
Postal workers across the country were involved in a long-running campaign of industrial action since the summer, including a number of strikes, which crippled mail deliveries.
Dave Ward, the union’s deputy general secretary, said: “Rather than accept market rate strategy for pay, this deal sets the benchmark for the whole of the postal industry to follow.
“The CWU has always recognised that change is needed in the Royal Mail and this agreement demonstrates that the union is leading the change agenda.
“The strong acceptance of this deal by postal workers shows that they also recognise that change is needed in the business.”

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