Tag: Royal Mail

ASA dismisses TNT Express gripe

Posted by | Jul 22, 2005 | |

The Advertising Standards Authority (ASA) has thrown out a complaint lodged by TNT Express (UK) against Royal Mail’s Special Delivery service following a spat over whose premium service is the best. TNT Express complained to the advertising watchdog about a direct marketing campaign in which Royal Mail claimed its service was cheaper and better than its competitors. TNT Express complained that both mailings were misleading, because the methodology of the surveys was not made clear.

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UK price curbs ‘will stamp out 40,000 postal jobs’

Posted by | Jul 21, 2005 | |

Royal Mail today warned it will have to axe 40,000 jobs if the postal regulator goes ahead with its plan to impose price controls on stamps. In a report, chairman Allan Leighton told Trade and Industry Secretary Alan Johnson the proposed prices would result in “unrealistic” cost cutting and could only be achieved by massive job losses. Royal Mail bosses believe it is unfair for the regulator to bring its productivity rate in line with rivals Deutsche Post or TPG, as those postal companies have received more investment and are more mechanised than the British system. The job losses – representing nearly a quarter of Royal Mail’s workforce – would be more than the cuts of 34,000 made by Mr Leighton three years ago in order to return the group to productivity. Mr Leighton’s appeal to the Government comes at a time when ministers are planning a review of Royal Mail and as the organisation tries to raise more cash.

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Why can’t UK Royal Mail see the gold in D2D?

Posted by | Jul 21, 2005 | |

To casual observers there is a little bit of the Wild West about the UK door drop marketing sector. Its volumes are expanding, the market is (as yet) unregulated and the full potential of the sector is not fully tapped. As the last truly unfragmented media channel available to marketers, it seems there’s gold left in them there hills. Experts say the UK market, compared with its European cousins, is nowhere near saturation in terms of the number of items delivered per household. So are the key door drop distributors, Royal Mail and free newspapers, making hay while the sun shines? Not Royal Mail, if media buyers and door drop brokers are to be believed. Royal Mail’s self-imposed restrictions on its D2D service – long booking lead times, a solitary delivery per day and a limit on the number of items postmen will carry – are a particular bugbear of D2D brokers and their clients. Though free newspapers are a very viable alternative, speakers at last month’s DMA D2D conference chose to voice their frustration at Royal Mail.

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UK Royal Mail tells Government to keep mandarins out of review

Posted by | Jul 18, 2005 | |

Royal Mail executives are pressing the Government to appoint a senior business figure to head the review into the future of the business. They fear an inquiry led by ministers or civil servants will reduce the prospect of radical changes.
An announcement about the terms of reference and the inquiry team has been delayed by Whitehall in-fighting but Alan Johnson, Trade and Industry Secretary, is anxious to release details before the Commons rises for the summer recess on Thursday. Royal Mail has lost the battle over privatisation although it remains hopeful of persuading ministers to back a “halfway house” solution based on setting aside 20pc of the equity for employees.

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Yeo backs UK Royal Mail’s ownership plans

Posted by | Jul 18, 2005 | |

One of the Tory leadership contenders has backed the Royal Mail’s proposals to give its employees a stake in the group’s ownership. The move by Tim Yeo, breaking ranks with official Conservative policy, comes days before a government-commissioned review into the state-owned postal operator’s future.
Gordon Brown, chancellor, and Alan Johnson, trade and industry secretary, are still finalising the terms of reference for the review, which will consider the Royal Mail’s future once the postal services market is opened fully to competition on January 1. The debate between the chancellor, Downing Street and the Department of Trade and Industry concerns the freedom that should be given to the senior business figure who will head the review to recommend ownership changes.

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