Tag: Royal Mail

With the release of their half-year performance results, Royal Mail has confirmed what customers already knew: this summer’s official and unofficial strikes and the widespread flooding seriously affected the quality of postal services throughout the UK.

Howard Webber, Chief Executive of Postwatch, commenting on Royal Mail’s announcement said, “Given the floods and the industrial dispute, customers will not be surprised that Royal Mail’s performance has been seriously below par during the summer. There will, however, be a collective sigh of relief that the bad news is over and that the future looks distinctly brighter.

“Industrial peace between Royal Mail and the Communication Workers Union means the industry, after a step backwards, can take great strides forward. Next year, customers should expect Royal Mail to be announcing a much improved performance. That should help all of us to post with confidence.”

New figures released today by Royal Mail confirm that industrial action during the second quarter of 2007-08 damaged services for postal customers. 78.4 pct of First Class letters reached their destination the working day after posting, compared with an on-target performance of 93 pct in the first quarter of the year.

Royal Mail Marketing Director Alex Batchelor said, “We are very aware that our customers simply didn’t receive the service they deserve as a result of this year’s strike action by the Communication Workers Union – and we’re very sorry that they were let down.

“Customers are all too aware that strike action continued during the third quarter of the year which means that targets will also be missed for the autumn period. But this week’s vote in favour of our pay deal is good news for customers – it’s a green light for Royal Mail to invest in new technology and modernise our operations so that we can return to the record highs in quality of service reached in the last two years and build on that success for the future.”

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.