Tag: Royal Mail

Postcomm ruling triggers Royal Mail pricing rethink

Posted by | Jan 28, 2005 | |

Royal Mail has been forced to overhaul its pricing strategy following a Postcomm investigation into anti-competitive practices. The Postcomm probe, launched over a year ago followed a complaint from a rival company that Royal Mail was offering unfair discounts to secure business. Postcomm concluded that two schemes – the catalogue customer reactivation and acquisition test, and the Mailsort 3 incremental ad promotion – were anti-competitive. Royal Mail has agreed to tighten up its internal compliance procedures as a result. Postcomm chairman Nigel Stapleton says: “We are being very watchful that Royal Mail is not using its dominance to freeze out competitors. We have extensive powers to deal with anti-competitive behaviour, which we will not hesitate to use. “We will continue to investigate complaints from competitors who feel their business is being threatened by unfair Royal Mail actions.”

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Royal Mail cuts HR spend by GBP57m in two years

Posted by | Jan 25, 2005 | |

Royal Mail has slashed its human resources spend by GBP57m in two years as part of a massive organisational overhaul, leading HR magazine Personnel Today reveals today. In an exclusive interview, Royal Mail group HR director Tony McCarthy and Kevin Green, director of People and Organisational Development, said that the HR budget has been cut from GBP173m at the start of 2003 to GBP116m. As part of the overhaul, the HR team has fallen from 3,700 to 2,400, which incorporated 1,400 job cuts and 100 new appointments. The HR to employee ratio has improved from 1:75 to 1:130. Other savings have been driven by removing duplication and process improvements in areas such as sickness absence and training.

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Rivals admit Royal Mail will be dominant UK postal player

Posted by | Jan 22, 2005 | |

Competitors to Royal Mail have said that the postal giant is set to be the dominant player in UK postal services for years to come. The admission came at a debate featuring the chief executives of Business Post Group, TNT Mail UK and DHL Global Mail at last month’s Mail Show Conference, and just under two months ahead of full deregulation of the UK postal services market. Sarah Chambers, chairman of postal regulator Postcomm, said that despite limited deregulation so far, Royal Mail still retained 97.2 per cent of the market. TNT Mail UK chief executive Nick Wells said he thought Royal Mail would be “the dominant player and that’s a good thing. But if we can take a 10-15 per cent share, we’d be happy with that.” However, Adam Crozier, chief executive of Royal Mail, said that Royal Mail is faced with falling mail volumes.

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New Operations Director for UK Post Office Ltd

Posted by | Jan 21, 2005 | |

Post Office Ltd today announced the appointment of Ric Francis as the company’s new Operations Director. Ric Francis has more than 25 years’ experience in the IT and operations sectors, and was most recently Chief Information Officer at Safeway Stores plc, where he was responsible for the company’s IT function.
His post as Operations Director for Post Office Ltd. is a newly-created role, combining IT and Network Support Services to optimise the company’s performance as the UK’s largest retail network. Mr Francis will sit on the Board of Post Office Ltd. and also the company’s Executive Committee.

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UK Royal Mail warned on poaching business

Posted by | Jan 21, 2005 | |

Postcomm, the postal regulator, has threatened to fine Royal Mail if it continues to use anti-competitive practices to keep rivals out of the UK postal market. Royal Mail yesterday agreed to rein in its marketing activities staff after Postcomm found discounts offered to magazine and catalogue companies had contravened competition rules. At the end of 2003, AMP, a rival postal company, complained that Royal Mail was trying to poach business customers through the use of special offers. AMP, which specialises in delivering magazines and catalogues, alleged that Royal Mail had offered discounts to companies in these sectors in an effort to drive it out of business. Following a long investigation, Postcomm said that Royal Mail had contravened two conditions in its licence designed to facilitate competition, as any discounts should be offered equally to all customers. Royal Mail said it had not realised at the time the discounts were anti-competitive, and that they were no longer on offer.

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