Tag: UK

Union Warns Against Post Office Panic Measures

Billy Hayes, the General Secretary of the Communication Workers Union said that today’s announcement of huge losses and threats to jobs in Consignia/Royal Mail should not lead to “knee-jerk reactions that the company would regret later”.
He said the union would work with the employer to improve productivity where it was reasonable and beneficial to the service. “Naturally, we want all our members to have secure employment in a profitable business,” he said. “But that involves all sections of the postal partnership being realistic – and that includes government.”

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£1.1 Billion loss underlines urgent need for radical restructuring

Consignia today announced a £1.1 billion, pre-tax loss for the year ending March 2002 as the company unveiled more details of its radical restructuring plan.

The Chairman, Allan Leighton, said: “The underlying loss from operations of £318 million graphically shows why we need to restructure the company and embark on our three-year renewal programme to restore profitability.”

He also announced that Royal Mail would save £350 million a year by moving to a single delivery at a consistent time, six days a week. “This is the most sensible and responsible way to reduce costs with minimum impact on customers,” said Mr Leighton.

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Christian Salvesen Financial Results

IT CAME as little surprise yesterday when Christian Salvesen said its pre-tax profit fell 26 per cent last year. The slump had been well flagged. The trouble is the company can do little to improve the situation, since its fate is largely dictated by the health of the depressed manufacturing industries over which it has no control.

The sector generates about 40 per cent of the group’s sales, the bulk of them from the UK. By its own admission the company’s profits will probably fall in the first half of this financial year as there seems little chance of an early pick-up in the manufacturing sector, although it says the position could improve in the second half.

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THE NEW NIGHTFREIGHT DELIVERS A RECORD PERFORMANCE

One year on from a management buyout (MBO), Nightfreight has
refocused and streamlined its overnight freight and parcels delivery
service, repositioned the company, achieved market leadership in the
mixed parcels and IDW (irregular dimension and weight) freight niche
and delivered an impressive set of trading figures in a very competitive
market place.
• Sales increased by 13.7%
• Profit up by 32.8%

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