Tag: UK

Delivery transparency key to good online shopping experience (UK)

Clear information on delivery charges and the ability to track the progress of items ordered are important factors in a good online shopping experience, a Royal Mail study has revealed.

Eight out of ten (84 per cent) of online shoppers expect clear delivery information before they place their order, while 81 per cent want the option to specify a delivery address for their goods and 77 per cent like to be kept updated on the progress of their order.

The study revealed that 19 in 20 online shoppers have abandoned a shopping basket with 37 per cent doing so regularly. More than four in ten people (42 per cent) ended their transaction before check-out because of the delivery charge.

And a good delivery experience comes only second to price in the overall shopping experience and is considered more important than shopping from established websites, well-known brands or having a large range of goods. 94 per cent of people are likely to shop again from an online retailer if they are happy with the delivery of their goods.

Val Walker, Head of Multi-Channel Retail at Royal Mail, said: “With 39 per cent of people now shopping online, and becoming increasingly comfortable with the process, delivery details and options are a primary influence on consumers’ choice of online retailer.

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Union rejects Royal Mail reform (UK)

Unions are holding a consultative ballot after the closure of the company’s own consultation.

They say a strike ballot could follow if the Royal Mail does not improve the pension benefits on offer.

The firm plans to reduce the final salary scheme for new and current members and raise the retirement age.

“Overall the proposal will cost people over 34% in their pensions, one way or another,” said Paul Reuter, an official of the postal managers union Unite.

“If there is no improvement then we shall move to a strike ballot,” he said.

The main features of the company’s plan to cut its long-term pension costs are:

– a career average scheme to replace the current final salary version from 1 April 2008 for existing staff
– the standard retirement age to rise from 60 to 65 in 2010, though only for service after that date
– new recruits to be offered a separate “money purchase” scheme
– staff will continue to contribute 6 pct of salaries a year.

Under a career average scheme, a member’s eventual pension will be related to their salary in each year of their career, rather than to their salary in their final year of employment, thus guaranteeing that most staff will get a smaller pension.

Last autumn postal staff voted to end a series of strikes over their employer’s plans to bring in new working methods as well as the changes to the pension scheme.

However, those proposals required further legal consultation with the staff, which saw 165,000 employees being sent a 44-page booklet outlining the impact of the changes.

At the time the Royal Mail claimed it had “the union’s support for the company’s overall proposed pension reform,” although the unions said at the time that their position had been misrepresented.

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Royal Mail: Decision on Pension Plan Reform (UK)

Royal Mail has announced the outcome of its consultation on changes to its pension plan – 12 months after first proposing amending the scheme.

The changes follow extensive talks with unions and employee representatives since last April, which resulted in major changes to the original proposals, followed by a formal consultation with every employee member of the pension plan lasting more than 60 days from last November to mid-January this year.

Royal Mail reiterated the announcement made last autumn that both the CWU and Unite had agreed to support the changes as part of wider agreements with each on pay, modernisation and pension reform.

Details of the changes to the plan are being sent to every employee. The key points are:
• All pension benefits earned before 1 April 2008 will be protected and linked to final salary at the time of retirement.
• Employees can continue to take their pension on reaching 60 but the normal retirement age will increase to 65 from 1 April 2010. It will be possible to draw a pension at the age of 60 and continue working while still contributing into the pension plan until the maximum level of contributions has been reached.
• From 1 April 2008, benefits building up for employee members of the plan will be earned on a Career Salary basis.
• The plan will close to new members from 31 March 2008.
• A new defined contribution scheme will be launched in April 2009 and new recruits joining the company after 31 March 2008 will be able to join it after they have worked for the company for a year.

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The Role Of European Post Offices

Noted this week is Richard Owen’s observations on “The Italian Perspective” in the Times.

Owen like myself, feels some frustration in the lack of thought when it came to revolutionising the UK’s postal network and, compared to the Italian model, postively backward.

The trouble is, attempts to make the most of the internet age and diversify in terms of products, has all been too little and too late for the Post Office. Declining mail volumes and the switch to online payments for road tax and direct state benefits have hit post offices very hard in a relatively short space of time. I cannot argue with the reasoning behind closures – they cost a fortune to maintain and many run at a loss, but we’re closing them because the network has simply bumbled along with insufficent thought to their long-term future. We also seem to be putting all our trust in a digital age when many areas of the UK (particularly rural) have little or no internet connectivity.

This all reminds me of a friend who lives not far away, in a more remote area of France. He often experiences complete power cuts – sometimes for several hours. Television reception is poor, the location impossible for a good line of sight for satellite reception, and entirely at the mercy of a local farmer who kindly erected a kind of makeshift booster mast made out of unwanted farming implements. It stands, somewhat embarassed, amongst a flock of bemused sheep. It works – when the weather is reasonable.
For many, a post office email service would be a lifeline, and use of the internet a real bonus. Cash machines too are few and far between and a post office network that was hooked into all the major banks would transform the role of post offices. Instead, the British see them as places to buy stamps and not much else.

Post offices have traditionally been community hubs and actually, whilst the technology may have changed, there is no reason why they cannot continue to be – and thrive.

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