Tag: UK

The Royal Mail issued a fresh warning today about its recovery plans if it was “forced” to deliver millions of letters for competitors at a loss.

Chairman Allan Leighton said stamp prices may rise by 4p for first class and 7p for second class and the universal service could start to “unravel.”

The warning was made in a submission to the industry’s regulator Postcomm which is proposing that the Royal Mail should charge 11.5p for delivering letters on behalf of other firms – so-called access rates.

Postal workers stepped up their conflict with the Royal Mail yesterday, asking for an immediate pay rise of 8%.

The Royal Mail has offered postmen and women a 14.5% increase over 18 months, which it says would bring the weekly wage up to £300.

But the extra money is linked to changes in working practices, including altered shifts and productivity targets, and the Communication Workers’ Union claims the real rise only equates to 3% a year.

Post office staff are preparing for a fight with Royal Mail group after being told individual branches will have to pay to smarten up their image.

In an attempt to make the loss-making network profitable, David Mills, chief executive of the Post Office, a subsidiary of Royal Mail group, is planning to rebrand the post offices, including smartening up premises, introducing new uniforms and rolling out personal loans and credit cards.

However, sub-postmasters have been told they will need to improve their image at their own cost.

“To compete with the banks and building societies head on we have to change the physical environment that we work in, and our staff will have to step up to the mark,” said Mr Mills.