Tag: Royal Mail

5000 postal workers wildcat in Glasgow

Posted by | Jul 31, 2007 | |

Thousands of Glasgow postal workers walked out of delivery offices today in a dramatic escalation of industrial action.

Strike-hit Royal Mail was plunged into deeper chaos after 13 workers who had refused to cross a picket line were sent home and union officials claim up to 5000 colleagues walked out in support of them.

Around 1100 staff at the Glasgow Mail Centre in Springburn were already on official strike today and the wildcat action added to the disruption.

The Communications Workers Union claims a deal was offered to bosses who would have averted the unofficial action but it was rejected

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Telecoms companies turn away GBP165 million a month by not accepting cash

Posted by | Jul 31, 2007 | |

Major telecoms companies could be losing over GBP165 million in revenue every month by failing to offer customers the option to pay in cash, reveals new research from the Post Office.

Almost six million UK households use cash or cheques to pay their bills, either through choice or lack of access to banking services. But many major telecoms companies – such as those offering combined broadband internet, telephone and digital TV packages – are excluding these people by limiting payment to direct debit only.

There are 2.8 million1 UK adults (1.9 million households) without a bank account who rely on cash payment methods to pay their bills. A further six million people with bank accounts (four million households) actually prefer to choose cash over direct debit when paying their bills.2 Combined, these people represent 14.6 per cent3 of the UK population.

With an average monthly telecom and entertainment package subscription costing GBP28 per month4, this equates to a potential GBP165.2 million in lost sales per month for businesses who fail to accept cash or cheques.

Post Office marketing director Gary Hockey-Morley said: “Failing to offer a cash payment channel means that businesses are restricting the size of their potential market, with some telecoms companies ignoring customers worth over GBP165 million per month.

“With 14,000 branches across the UK, and 99 per cent of people living within three miles of a branch, the Post Office offers an easy route to bill payment services for people who choose to pay their bills in cash and can also ensure that companies are socially inclusive in offering their services to people without bank accounts.”

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Charities fear reduced income due to postal strikes

Posted by | Jul 30, 2007 | |

Major UK charities fear that the UK-wide postal strikes could reduce fundraising revenue.

Response rates are set to suffer because of the strikes, with some smaller charities likely to experience the biggest problems with income over the two-week strike period.

“The postal strike has not only delayed the appeals we have sent out to donors, but it has postponed incoming funds from those who want to help us support disabled people,” said Karen Barnes, head of direct marketing and legacies at Scope.

However, Barnes stressed that the charity had taken steps to ensure that the services it provides were not affected.

Geraldine Cetin, marketing manager for acquisitions at the Royal National Lifeboat Institution said that in combination with the recent flooding across large areas of the UK, the strikes could prove most detrimental to smaller charities, which lack the contingency funds of larger organizations.

As well as delays to campaigns, charities are concerned about the strike’s potential impact on response rates and subsequent income.

“If donors receive two-week’ worth of mail in a couple of days, response rates will decrease,” said Andrew Jones, head of direct marketing at the Royal British Legion. “The strike could mean that we have significantly reduced direct mail income for two weeks.”

Jones also highlighted problems with response management at mailing and fulfillment houses and disruption to planned campaigns as further issues.

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Royal Mail lines up next sell-off

Posted by | Jul 29, 2007 | |

Royal Mail is to sell off a second multi-million pound property port-folio of post offices and sorting depots just months after concluding its first GBP 70m deal.

The state-owned postal service has appointed property agents Atisreal to undertake the sell off, which property professionals predict will contain a significant number of retail post offices, as well as industrial and office buildings.

Although many of the transactions are likely to be sale-and-leasebacks, the move to cut liabilities and generate cash from its property portfolio is likely to anger campaigners trying save the post office network in the face of planned closures.

The sale in March of 300 properties was a mixture of freeholds and leaseholds, some occupied some vacant, and was bought by Land Securities Trillium, the outsourcing arm of the largest property company in the UK.

Although the make up and size of the portfolio now being put together has not been defined the sale price could top GBP 20m.

With a countrywide property portfolio estimated to exceed GBP 2 bn in value, Royal Mail is in a position to realize a lot of value from its assets, as it implements a rationalization programme aimed at cutting losses and helping it compete against the private sector.

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European Commission plots action over postal VAT

Posted by | Jul 27, 2007 | |

The European Commission is threatening to take the Government to the European Court of Justice unless it amends the law which allows Royal Mail to be exempt from paying VAT, in a move which could force a huge hike in postal rates.

The postal operator’s rivals have been pushing for a review for months, saying the exemption gives Royal Mail a significant price advantage.

The EC has formally requested that the UK, as well as Germany and Sweden, amends its legislation on the exemption.

The threat is part of EC plans to ensure fair competition between former monopolies and market entrants. The EC has described Royal Mail’s VAT exemption as ‘the single most important obstacle to achieving effective competition in this sector’.

The Commission also claims to have received a number of complaints that the different tax liabilities distort competition and that Royal Mail should be subject to the same tax regulations as its competitors.

Laszlo Kovacs, European Commissioner for Taxation and Customs, says: “The EC, as guardian of the EC Treaties, is obliged to ensure that EU rules are applied in a harmonised manner across the Community.”

A Royal Mail spokesman says: “Royal Mail remains opposed to the imposition of VAT on our postal charges. While the issue of VAT is a matter for the UK Government, we have said that an increase in stamp prices as a result of the imposition of VAT is the last thing we want for any of our customers, particularly charities and small business.”

Royal Mail also questioned the actions of the European Commission in pursuing its VAT exemption, when large parts of the EU will not have fully liberalised postal markets until 2009 at the earliest, under the latest EU timetable. The UK’s postal market was opened up to full competition in January 2006.

Postcomm recently urged the EC to change its VAT framework so that all postal operators can pay a reduced uniformed VAT rate to make the market ‘a level playing field’ for all operators. The independent postal service regulator welcomed UK Mail’s recent move to make it exempt from paying VAT on its downstream access.

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