The European Commission said it deepened its probe into the acquisition by Computer Sciences Corp of Royal Mail Business Systems. The commission said it is now investigating the deal under its normal procedure rather than its simplified merger procedure, which is reserved for operations that are deemed unlikely to raise competition concerns.
Read MoreRoyal Mail’s hopes of putting its strife-torn industrial relations record behind it and returning to profit this year were dealt a blow yesterday after a key group of postal workers voted to strike over pay. Postmen in Royal Mail’s London division voted by an overwhelming majority on a 68 per cent turnout to take industrial action in a dispute over London weighting.
Read MoreEighty thousand posties will get GBP20-a-week more to scrap the second delivery.
They also stand to pocket a GBP1,000 one-off bonus if the move saves as much as bosses expect. They will have to work longer shifts and will have bigger delivery rounds. Chief executive Adam Crozier revealed the plan after Royal Mail said it had slashed losses by GBP120 million in the past year.
Leaders of the Communication Workers’ Union have backed the proposed sweetener for staff.
Read MoreRoyal Mail Group yesterday showed signs of a turnround as it announced a halving of full-year losses to GBP600m. However, progress was marred by widening losses at Post Office branches and by the announcement of a GBP4.6bn pensions black hole. The group said it would pour GBP100m a year into its pensions scheme until it filled the hole, the result of falling equity prices. Royal Mail went into the red in 2001 and last year reported a record loss of GBP1.1bn. It has since shed 16,000 jobs and closed 345 post offices to cut costs. Its industrial relations have also improved, with a 90 per cent fall in industrial action.
Read MoreRoyal Mail Group today announced, as expected, an improving financial performance and predicted a return to profit in 2003/04. They also announced continued growth in mail volumes and their best industrial relations for over 10 years. At the same time the new Chief Executive admitted, (in advance of announcing the details next week) that it was disappointing only 3 of the 15 performance targets were met. One of the targets missed was for the flagship 1st class stamped and franked service. Royal Mail revealed that only 91.8% of 1st class letters arrive next day. This means that over a million letters per day are not arriving on time. Peter Carr, Chairman of Postwatch, commenting on the announcement said, “This is very good news and the new management should be congratulated – in particular they should be applauded for a year without industrial conflict. “Customers will remain concerned that, although improving, standards of service are still short of target at a time when prices have increased”.
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