Tag: Royal Mail

Royal Mail union predicts national strike as bosses claim big bonuses

Posted by | Jun 4, 2007 | |

Royal Mail has awarded its chief executive hundreds of thousands of pounds in bonuses in a move that is likely to increase the prospect of an all-out strike over pay, The Times has learnt.

Adam Crozier is understood to have received a bonus of up to GBP 370,000 and further benefits, taking his total package to more than GBP 1 million.

His award comes as the Communication Workers Union is holding a strike ballot over a pay offer of 2.5 per cent or a GBP 600 lump sum. The union is increasingly confident of winning the ballot, which could trigger the first national postal strike since the summer of 1996. That action led to huge backlogs of mail around the country.

Details of Mr Crozier’s pay, which makes him the highest-paid civil servant in the country, will be revealed in Royal Mail’s accounts and financial results for the past financial year. Publication has been delayed and Royal Mail has not set a date for them to appear.

Some union sources believe that the organisation has delayed publication to avoid controversy over the pay awards, which will also go to other executives, while the ballot is running.

The result of the ballot is due on Thursday. Independent polling by the union last week predicted a vote of 65 per cent in favour of industrial action. If the union does win a “yes” vote, it could begin strike action the following week, although it could leave some time for last-ditch talks with Royal Mail

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Pubs to run UK post offices

Posted by | Jun 3, 2007 | |

More than 500 pubs are being earmarked to run post offices inside them.

The move would offset the Royal Mail’s axing of 2,500 post offices over the next two years.

Industry Secretary Alistair Darling sees pubs as ideal locations for “outreach post offices” to be set up in remote communities.

Royal Mail chiefs have been involved in talks with campaigners to match pub sites with areas where closures are likely.

The Pub Is The Hub coordinator John Longdon said: “It’s great the Government has recognised the role pubs can play in the community.”

Hilary Scott, who runs a post office from her pub in Wistow, North Yorks, said: “The post office brings in new people – our pub has become a real focal point.”

The Communication Workers Union said they are confident a secret ballot of their 130,000 members will show a huge vote for strike action on Thursday.

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Post strike could cost Royal Mail GBP 300m

Posted by | Jun 3, 2007 | |

Royal Mail has privately warned that a national postal strike could cost up to GBP 300m in penalty payments and lost income, according to senior industry figures.

Royal Mail executives have made the claim to a group representing major business users, while indicating similar consequences to industry regulators.

As the Communication Workers Union prepares to announce on Thursday the results of a national strike ballot over pay, conditions and a potential restructuring of the business, Royal Mail has drawn up contingency plans that include drafting in up to 7,000 managers.

The CWU is confident that its 130,000 membership will vote in favour of the first national strike in 11 years, pointing to independent polls which indicate that 65 per cent will say yes to action.

Earlier this month Royal Mail asked Postcomm, its regulator, to make an exception in the case of industrial action to regulations governing penalty payments if service standards fall. At present a strike is not considered ‘force majeure’ under the regulations, and if there is a stoppage, Royal Mail can be penalised.

This can happen in several ways: a compensation scheme for businesses which reduces Royal Mail’s future revenues, a quality benchmark that it must meet or trigger penalties – known as the ‘C factor’ – and direct fines from Postcomm. Royal Mail believes the first two measures could cost it up to GBP 300m in the event of protracted strikes, and on 2 May asked the regulator to waive them for two years.

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Later delivery plan for UK post

Posted by | Jun 2, 2007 | |

Postal deliveries could be pushed back to a 10.30am start time following a major overhaul of working practices by Royal Mail.

Residents and businesses across Lancashire could face later deliveries after Royal Mail announced they were looking at a more efficient way of working.

Unions chiefs have hit out at the change and said it could bring chaos to the delivery service.

The news follows initial moves at the Leyland sorting office where postmen were informed they could not leave for their rounds until after 10am.

Royal Mail said the move had been prompted by a desire to make postal workers spend more time in the sorting office before they start deliveries.

They said the change would allow more efficiency in sorting the next day’s post.

The changes are to be rolled out at sorting offices across Lancashire and the rest of the UK but Royal Mail claim it would not result in deliveries stretching in to late afternoon.

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Marketers still ignorant on Pricing in Proportion

Posted by | Jun 1, 2007 | |

More than a fifth of senior marketing executives and print managers have never even heard of Royal Mail’s Pricing in Proportion (PiP) system, almost a year after it was first introduced, according to a study.

The survey, published by financial and business advisor Grant Thornton, reveals that many companies may be losing out by not taking PiP into consideration.

The changes were introduced in August of last year, yet of the 80 per cent who were aware of the changes, only 60 per cent have assessed the cost implications to their business.

Daniel Smith, print industry expert at Grant Thornton, says: “As Royal Mail’s price changes are fully digested there will be plenty of corporates looking at ways to cut their overall postage costs.”

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