Tag: Royal Mail

SMEs in danger of postal strikes (UK)

Posted by | Nov 12, 2007 | |

VARs are feeling the bite of the postal strike as the Federation of Small Businesses (FSB) warns further strikes could force small companies out of business.

The strike in October is believed to have cost the London economy alone more than GBP 300m after several thousand postal workers took part in the dispute, causing a backlog of 12 million letters and parcels in UK sorting offices.

Simon Briault, representative for the FSB, said: “It is not just about sending a few letters or parcels, it is about the whole economy. Research conducted by the FSB found that 94 per cent of SMEs use Royal Mail exclusively and 89 per cent of them use the company every day.

“SMEs do not really have an alternative to Royal Mail. Due to privatisation, alternative services have cherry picked the larger organisations, for example government bodies, and do not see SMEs as a business opportunity,” added Briault.

He continued, saying that SMEs are under severe pressure and the strike could cause businesses to close due to financial difficulties: “The FSB is trying to raise awareness of the issue and attempting to get Royal Mail to realise the position SMEs now occupy within the economy and the market. If SMEs are not receiving the cheques they need to stay buoyant, then they have to borrow money from banks and pay interest rates.”

Mike Gammie, IT services development manager at online VAR Misco, said: “Many businesses post us cheques – if we do not receive them then we cannot bank them.
“Royal Mail has not done itself any favours. Misco was looking at alternatives to Royal Mail before the strike and we are now opting for these,” added Gammie.

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UK MP's warning over business post prices

Posted by | Nov 12, 2007 | |

Proposals by Royal Mail to charge business customers higher prices for delivering their post in rural areas must be fought, an MP has warned.

Last night North Norfolk MP Norman Lamb said that the prospect of “zonal charging” for business mail – which will see rural and urban areas treated differently – represented “the start of a slippery slope”.

Royal Mail has applied to the postal regulator Postcomm for permission to charge more to business for delivering mail in rural areas to reflect the higher logistical costs.

The proposals are currently being consulted on with a final decision expected next month.

Mr Lamb said: “The implications of this are potentially very serious once we break the principle that you are treated equally wherever you live. It is a very slippery slope.

“The postal service treating all equally is a policy that we have got to fight for.

“Even if this is rejected Postcomm appear to be leaving the door open for Royal Mail to come back again. This issue should be kept in people’s minds and campaigned against.”

Postcomm has already declared it is mindful to reject Royal Mail’s application but has said it is not opposed to the principle of cost reflective pricing – where the price of postage reflects accurately how much it will cost to deliver.

A spokesman for Royal Mail refused to confirm or deny whether the company would apply again if its application is rejected saying the company would await the details of Postcomm’s decision.

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‘No vacancies’ signs go up in New York as dollar demand goes through the roof

Posted by | Nov 12, 2007 | |

Dollar frenzy has hit the high street with sales of the US currency now up 87 per cent on the same period last year for the Post Office®, the UK’s largest provider of foreign currency.

But UK holidaymakers hoping to cash in on the dollar crisis and book a Christmas shopping trip to the USA will have to look beyond the traditional favourite, New York, where most affordable hotels have already hung out the ‘no vacancies’ signs. New York flights are also heavily sold – with little or no availability for weekend trips.

The solution for shopaholics keen to snap up bargains Stateside, says the Post Office®, is to consider rival cities. Las Vegas, Boston, Chicago and Miami all have shops to rival New York and plenty of pre-Christmas hotel availability.

Post Office® head of travel services Helen Warburton said: “Bargain hunters with more pounds in their pockets after sterling breached the USD 2 watershed can make significant savings on iPods and Playstation 3s, designer jeans and fashion accessories just as easily in cities like Las Vegas and Boston as in New York.”

With the pound riding higher against the US dollar than at any time since 1981, the latest Post Office® data suggests that record numbers are planning to head off across the Atlantic.

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Savings on the rise but apathy still reigns

Posted by | Nov 9, 2007 | |

Savers across the UK could be losing out on billions of pounds in interest according to new research by the Post Office, which reveals that three in ten people have no idea what rate their savings account currently pays. Worryingly, almost half (42 per cent) of savers have always held their savings with the same company and never even looked at another provider.

As new statistics show UK household savings are up to 3.1 per cent for the second quarter of 2007, it seems that continuing financial market volatility could be putting people off more risky investments, and turning the focus towards more traditional methods of savings. But many savers aren’t maximising their savings potential and continuing to hold and pay money into accounts which deliver a poor return.

Despite 42 per cent of savers citing the interest rate as the most important factor when choosing a provider, the reality is that 39 per cent have no idea whether their provider upped its rate during the recent base rate rises – of which there were five between January 2006 and October 2007.

And with some of the most popular savings accounts paying as little as 1.05 per cent the Post Office® is urging savers to make sure they take advantage of some of the great interest rates currently available, and know their money is working as hard as it can for them.

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CWU and Pensioners demonstrate against UK post office closures

Posted by | Nov 8, 2007 | |

This week, the Communication Workers Union and the National Pensioners Convention held a joint demonstration outside Trafalgar Square Post Office against closures and franchising.

Demonstrators were concerned about the Government’s decision to fund the closure of 2,500 sub-post offices nationwide by the end of 2008, and Post Office Ltd’s decision to enter into franchise partnerships with WHSmith at 70 locations. Postwatch came under criticism too, with Kate Hoey MP accusing us of not doing enough to oppose the changes.

Postwatch wants a post office network which is sustainable and not subject to unplanned closures, and which allows customers reasonable access to services. We recognize that customers’ habits are changing and that the network must change with them. Because of this, we are scrutinizing Post Office Ltd’s proposals before every public consultation of the closure programme. Our aim is to minimise customer inconvenience and encourage local input on proposals.

While we understand customers’ concerns about franchising, it is a means of continuing to provide services, often with increased opening hours. Moreover, by reducing operational costs in this way, Post Office Ltd should be better able to create much-needed stability for its network.

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