Tag: Royal Mail

UK's CWU union announces two 48-hour Royal Mail strikes in October

Posted by | Sep 20, 2007 | |

Postal workers will stage two 48-hour strikes on Oct 5-6 and Oct 8-9 in the next stage of their dispute with Royal Mail over job cuts and pay, the Communication Workers Union has announced.

The workers will also start a rolling program of strikes from Oct 15 and continuing weekly until the dispute is resolved, the union said.

CWU deputy general secretary Dave Ward said the strikes were a proportionate response to Royal Mail’s actions.

“The workforce has had enough of Royal Mail messing them around,” he said. “We’re not going to tolerate an employer that ignores its workforce, ignores the union and ignores its customers.” Earlier this month the union rejected the latest package put forward by Royal Mail, which consisted of a 6.7 pct increase on basic pay over two years, because of a disagreement over working hours. The pay offer comprised the 2.5 pct increase originally proposed for this year, plus a further 0.5 pct from money accrued in “share of savings schemes” and an additional 800 stg if targets are met.

Royal Mail condemned the strike action, saying it is clear that the CWU leadership does not begin to understand the challenges facing Royal Mail and the very serious consequences for the business if we do not push ahead and modernize.

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UK Royal Mail faces further strikes in October

Posted by | Sep 20, 2007 | |

Britain’s state-run postal service, Royal Mail, is facing two further strikes after the Communication Workers Union (CWU) announced dates for industrial action in a dispute over pay and working conditions.

“The Communication Workers Union is announcing today that there will be further strike action in response to Royal Mail’s draconian and destructive proposals on pay and business changes,” the union said in a statement.

The CWU said in June its members had voted in favor of industrial action due to Royal Mail’s “below inflation pay offer” and its plans to reduce the workforce by around 40,000, or about 27 percent, by automating mail-sorting processes.

Royal Mail said it remained willing to talk to the union but needs to modernize to prevent the business from failing and that the only way it could improve pay, protect pensions and deliver customer service was by modernizing.

“It is clear from our discussions that the CWU leadership does not begin to understand the challenges facing Royal Mail and the very serious consequences for the business if we do not push ahead and modernize,” Royal Mail said. The company is fighting private competition from Business Post, Dutch mail company TNT NV and others after losing its 350-year monopoly on postal services last year. The growth of email, text messages and the purchase of vehicle tax discs and television licenses online have also dented profits. The union said it would hold 48 hour strikes on Oct. 5 and 6 and Oct. 8 and 9.

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Post Offices at the crossroads. L13979

Posted by | Sep 20, 2007 | |

Postcomm, the independent regulator for postal services, today urged the Government to make the tough and overdue decisions needed to plan the future of the Post Office network. The Government must take into account the wider social role played by Post Offices in local communities as well as the imperative of establishing a sustainable, stable business.

Postcomm does not regulate Post Offices but it does monitor and research developments in the network of over 14,000 offices and provides independent advice to the Government in the form of an annual report which is published today, entitled “Post Offices at the crossroads”.

Research for Postcomm has provided clear evidence on why Post Offices urgently need a direction from the Government to secure their future. Postcomm believes that keeping things as they are is not an option, because:

The Post Office Network lost GBP 111 million last year even after Government’s yearly subsidy to Rural offices of GBP 150 million – this subsidy is due to be withdrawn in 2008;

Government departments such as the DWP and DVLA are withdrawing services from Post Offices – revenue from transactions carried out by Post Office Ltd on behalf of Government has fallen by GBP 168 million since last year;

New products such as investment bonds, personal loans and credit cards continue to deliver only very low business and income levels – less than 1% of total weighted sales in urban areas – and are not filling the gap left by the withdrawal of government business; and

Post Office Limited has made some progress in developing alternative delivery models, such as mobile Post Offices, which offer a good opportunity for continuing the valuable services that Post Offices provide in local communities, but more needs to be done.
The rural Post Office network faces particular financial difficulties due to changes in customer use. Only 1,500 of the 8,000 rural Post Offices are making money for Post Office Ltd, with the remaining 6,500 branches costing more to run than they provide in income.

Postcomm has seen a distinct change for the worse over the past year in the mood and expectations of those involved in the Post Office network, reflecting a recognition that without clear direction from Government the problems will escalate. Despite a rise in gross pay, the number of sub-Postmasters who are not confident about the future has increased to 72% from 60% last year.

Nigel Stapleton, chairman of Postcomm, said:

“The Government must decide what it wants from the Post Office network and plan for its long-term sustainability. The network needs a clear vision and consultation is needed at national and local level taking into account the plans for regions as a whole.

“A key objective of our report is to help to inform the Government’s decisions on the so-called ‘social network’ of rural and urban deprived offices and on the network more generally. Despite the apparent success of reinvention programmes, the end of the Post Office Card Account and loss of future contracts point to an uncertain future for these branches. Sub-Postmasters need support, training and guidance in order to plan for the future of their businesses.”

Postcomm wants a flexible but planned approach to addressing the issues affecting the network and is concerned that Post Offices might miss out on the business opportunities from other postal operators coming into the market. Customers and Post Offices could benefit from other operators offering their services through Post Office branches. Royal Mail could also do more to use Post Offices as their shop window, and possibly bring in more business for both parties.

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Costly Chatter and Baffling Bills

Posted by | Sep 19, 2007 | |

Telecoms bills are a major source of confusion for UK residents – according to a new report from the Post Office out today.

It revealed that the average household using mobile and landline phones is around GBP 79 out when estimating their bills, meaning the UK public appears to have little idea of the real cost of chatting.

The report showed the best budgeters to be the canny Scots, with a combined annual miscalculation of just GBP 58 per household. Londoners languished at the back of the line, with an average miscalculation of GBP 134 per household.

Experts have blamed this inability to accurately budget for telecoms costs on unclear billing processes and surprise hidden charges, as well as people not thinking about the cost before making a call.

The research also showed that people found it easier to estimate their internet bills than other telecoms costs – with the average home connected to the internet miscalculating bills by only GBP 3 per year.

Work is underway by the Post Office to launch a broadband service in the autumn that will compete head to head with the major players in the market by offering a great value for money deal.

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Norwich Union announces Post Office deal

Posted by | Sep 17, 2007 | |

UK-based insurer Norwich Union has announced a distribution deal with Post Office Financial Services. Under the agreement, Post Office-branded Norwich Union protection products will be available for the millions of customers who use the Post Office every week.

A 50-plus life insurance plan is the first product to be launched. It offers simple, affordable life insurance for those over 50 without the need for underwriting. A further life protection product will be launched later in the year.

David Barral, intermediary and partnerships director for Norwich Union, said: “We are delighted to announce our latest partnership, which builds on our existing relationship as the Post Office’s lead insurance provider of personal motor, home and commercial vehicle insurance.

“This is an exciting opportunity which supports our strategy to develop new distribution channels, in particular to increase our offerings direct to customers and to develop new, simpler products which are affordable and easy to buy. It will also help to close the estimated GBP2.3 trillion life protection gap that consumers have in the UK.”

Post Office director of insurance Phil Ashkuri said: “The Post Office has already attracted well over half a million insurance customers and this new launch builds on our existing range, which now includes travel, home, motor and van insurance and a payment protection policy – lifestyle protection. As with all our financial services products, our new over-50s life plan offer a simple and straightforward solution at value for money prices.”

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