Tag: Royal Mail

Royal Mail will unveil record profits of nearly GBP600m – GBP1.6m a day – this week, triggering an incentive scheme that will give its 180,000 employees a minimum bonus of GBP400 each. Last year, Royal Mail’s profits were GBP537m. This year, helped by stamp price increases, profits are expected to go up by ten per cent and it will be able to report that all its businesses are now in profit. At the same time, the Government is expected to give its support in principle to a radical restructuring plan that would give workers shares in the business and about GBP1.3bn to inject in the pension scheme.

Royal Mail’s service quality last year was the best on record, and was ahead of its targets for the vast majority of the mail, according to preliminary figures published today. 94.1% of First Class letters were delivered the working day after posting, compared to a target for the service of 93%. 98.8% of Second Class letters arrived within three days, compared to a target of 98.5%. Chief Executive Adam Crozier said, “These are fantastic results – they are the best ever, they are ahead of targets, and they show a sustained period of record performance stretching back to the summer of 2004. These levels of performance show that Royal Mail is determined to compete for business by offering customers the very best service at a value for money price. Rivals will find our standards difficult to match. Royal Mail’s postmen and women have done a first class job.”

Postal workers will be balloted for nationwide strikes unless a row over pay is resolved by next month, union leaders warned today. The Communication Workers Union gave Royal Mail a deadline for making progress on a dispute which has flared after the company decided to impose a 2.9% wage rise on postal workers.
In a letter to CWU members today, the union said it was “totally opposed” to the Royal Mail’s behaviour. Industrial relations have suffered in recent weeks after the union accused Royal Mail of trying to disrupt a ballot it was holding on future strategies covering pay, working conditions and pensions. The leadership has tabled a motion to next week’s annual conference of the CWU in Bournemouth urging the Royal Mail to reopen negotiations and to allow postal workers to have a vote on a final settlement.

The Government today maintained it had not made any decision on whether to back a Royal Mail plan to issue shares to its workers. The idea, strongly supported by Royal Mail chairman Allan Leighton, has alarmed the Communication Workers Union, which believes it would be a first step to privatising the postal service. New Trade and Industry Secretary Alistair Darling said today he would not be rushed into making any decision on whether to support the move. He said: “I have taken no decision at all. I am only 10 days into this job and I will not be rushed into any decision.” Mr Darling said he will be meeting Mr Leighton soon to discuss the shares issue.