Tag: Royal Mail

Royal Mail Letters MD resigns over plan

Posted by | Apr 5, 2007 | |

Ian Griffiths, managing director of Royal Mail Letters, has resigned after the board rejected his business plan.

Mr Griffiths, who had been with Royal Mail only a year, is thought to have been resisting deep cost-cutting being demanded by the Government in return for about GBP 3.9bn in state support.

Regarded as number three in the Mail hierarchy, Mr Griffiths joined from GKN Automotive on a salary close to GBP 500,000 after his predecessor resigned just 18 months into the job.

A spokesman for Royal Mail said yesterday that Adam Crozier, the group’s chief executive, would run the letters operation until a replacement was found. “We will begin looking for a new person for the role going forward,” he added.

The departure creates yet more uncertainty at the Royal Mail, which is in the process of restructuring and in pay negotiations with unions.

The search is on for a new deputy chairman, who would probably then succeed Allan Leighton when his contract expires next March.

In February, Royal Mail announced that profits collapsed 86pc in the six months to the end of September from GBP 159m to GBP 22m. The company loses GBP 4m a week on its creaking network of post offices. For every stamped letter, sent mainly by individuals, it loses about 6p.

Royal Mail has argued that the opening up of the UK’s mail market last January has caused competition to flood in more quickly than anticipated, worsening its financial position.

Analysts say the root cause of the Royal Mail’s problems are its inability to control costs and its need to finance its growing pension fund deficit.
Royal Mail has seen several recent departures, including David Flowers, head of property, who left in January.

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Postbag full of Easter promise as Royal Mail predicts record card sending

Posted by | Apr 5, 2007 | |

Royal Mail predicts it will deliver over 14 million cards for Easter this year, the biggest postbag ever for the religious celebration and second only to Christmas in the volume of cards being sent!

Easter is now the second most popular calendar date for sending cards through the post after Christmas, surpassing its closest rival Valentine’s Day by nearly two million cards. Valentine’s Day is in third position (with over 12 million cards sent through the post) with Mother’s Day (12 million cards) and Father’s Day (with seven million cards) fourth and fifth respectively.

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BBC Industrial Relations Head joins Royal Mail

Posted by | Apr 5, 2007 | |

Gillian Alford, the BBC’s head of employee relations and policy for the past nine years, has joined Royal Mail as head of industrial relations for the letters business.

Kevin Green, Director of People and Organisational Development for Royal Mail Letters, said: “I am delighted to welcome an industrial relations specialist of Gillian’s calibre and experience.

“She brings with her a strong track record in successfully helping to manage a large workforce and tackling tough challenges in a rapidly changing environment.

“Royal Mail is facing the key challenge of competing effectively in a market open to full competition. At a time when competitor activity is intensifying, we look forward to Gillian playing a central role in the transformation of Royal Mail.”

Gillian said: “I’ve enjoyed working with committed managers and trade union officials during my time at the BBC and I’m grateful for their support. I look forward to building the same relationships in Royal Mail Letters.”

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MBE sets up new alternative ‘Post Office’ venture

Posted by | Apr 4, 2007 | |

Mail Boxes Etc. (UK) Ltd., (MBE) is offering sub postmasters and independent retailers an opportunity to provide alternative postal services under a new franchised concession. This could create postal services in areas where they did not exist previously and would also enable sub postmasters facing closure to stay in business and continue to serve their local communities.
MBE is an experienced franchisor with a rapidly expanding network of more than 100 high street-based centres in the UK that specialise in a wide range of postal, communication and business services for local companies and members of the public.

The new franchise proposal offers a proven business solution that mirrors the existing MBE model and could make excellent use of former post office premises. Outlets in former post offices and convenience stories will handle post and parcels and also offer a wide range of other popular services currently offered by the Post Office network including, for example, foreign currency exchange, bill payment services and money transmission.

MBE’s new developments in this area will be spearheaded the founder of Postmasternet Ltd, a company that successfully courted big business to introduce new income streams for ailing post offices. The founder said:
“We are confident that our proposition will appeal to sub postmasters, especially those who want to stay in their own area and are entrepreneurial. There are limitless opportunities, particularly in places with large numbers of small businesses and people working from home.”

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Royal Mail's Managing Director quits

Posted by | Apr 4, 2007 | |

The Managing Director of Royal Mail’s letters division has left the group unexpectedly after just 13 months in the job.

Ian Griffiths, who was previously group managing director of GKN Automotive, joined the postal operator in February and was a member of the board.

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