Tag: Royal Mail

Royal Mail eyes return to rail for bulk traffic

The UK’s Royal Mail wants to use rail for long-distance bulk mail, but believes the sector cannot provide the consistency needed for time-sensitive shipments.
The decision in June to move time-sensitive mail to road under a new hub-and-spoke system by the spring, saving GPB90m (EUR127.8m), was a “complete no-brainer”, Royal Mail chairman Allan Leighton told a government transport committee inquiry. Quality of service, cost and, most importantly, consistency were all behind the decision, he said. Paul Bateson, Royal Mail’s director of logistics, accepted the fact that infrastructure provider Network Rail gave high priority to mail trains, but he said when there was a problem, rail could not recover quickly enough.

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Postcomm sets compensation rates for delayed mail

Following consultation, Postcomm today set out the details of how Royal Mail should compensate its customers if their letters and packets are delayed in the post. Postcomm’s determination provides separate compensation schemes for businesses that use Royal Mail for bulk mailings, and for private customers. The bulk mail compensation scheme will come into effect for this financial year, linked to Royal Mail’s quality of service from April 2003. Compensation for private customers will operate from 1 January 2004. Business customers who send out bulk mailings will be compensated at the rate of 1% of their bills for each 1% that Royal Mail fails to meet national targets. The minimum payment will be at a shortfall of 1% and will increase by 0.1% increments up to a maximum of 5%.A separate scheme is proposed for domestic users who will be able to make a claim for delays to first or second class mail, Special Delivery
and standard parcels.

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Banking on the future of the Post Office network

Postcomm publishes its third annual report on the Post Office network today. In it, Postcomm says that significant progress has been made in implementing the key recommendations of the Cabinet Office Performance and Innovation Unit’s 2000 report into the network. The last year has seen: the announcement of financial assistance for rural Post Offices, the start of the urban reinvention programme and improvements for remaining urban Post Offices, financial support for Post Offices in urban deprived areas and the launch of expanded banking facilities at Post Office branches.

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Regulator fines Royal Mail GBP7.5 million – Royal Mail comment

Commenting on Postcomm’s announcement today that it intends to fine Royal Mail GBP7.5 million for failing the licence targets last year for two First Class business mail services, Royal Mail’s Chief Executive Adam Crozier said: “This heavy GBP7.5 million fine further tightens the financial pressure on Royal Mail. It underlines the need for us to get on with the changes that will deliver efficiency savings and better services to customers. While Royal Mail has reported last month some of its best customer service for five years, we realise we have to perform even better to avoid further fines, potentially even greater than GBP7.5 million.

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London braces for series of strikes

London faces severe disruption as union leaders prepare tomorrow to announce the dates for strikes involving almost 30,000 workers. The capital is being threatened by a wave of strikes that could disrupt education, council services, the Heathrow Express rail service as well as the post. At issue in most of the disputes, including the postal action, is the weighting allowance that is supposed to compensate for the high cost of living in the capital. The sharp rise in London house prices in recent years has fuelled discontent about the level of weighting allowances, with claims that many workers are in real terms poorer than colleagues doing the same job elsewhere in the country. London postal workers belonging to the Communication Workers’ Union voted overwhelmingly for strike action over weighting last week. The union wants a rise to £4,000 throughout the payment area, which includes Greater London and parts of the Home Counties.

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