Tag: UK

Royal Mail payments won't plug pension hole

Royal Mail’s plan to clear its pension deficit is set to leave a 2.9 billion pound hole because the group is understating the size of the deficit, a leading pension consultant said on Tuesday.
In a note for RBC Capital Markets, independent consultant John Ralfe says the company’s latest annual report shows it is basing its 17-year plan of inflation-linked annual payments of 260 million pounds on a deficit of 3.4 billion pounds — below the 5 billion pound deficit under accounting standard IAS 19.
Such a payment plan is set to leave a deficit of 2.9 billion pounds, meaning the group may have to raise charges to customers.
The Royal Mail pension scheme’s 450,000 members make it the UK’s largest corporate pension scheme by that measure.
Ralfe’s note comes shortly after the state-owned group, which lost its 350-year monopoly on postal services last year, faced strikes by workers over pensions, pay and shift changes.
The company said last week falling mail volumes, rising competition and a payment into its pension scheme led to a one-third drop in annual profit. It also attracted controversy by saying Chief Executive Adam Crozier would collect 74 percent of his performance-related bonus.
Ralfe said Royal Mail’s shortfall in payments could lead to higher charges for customers.
“Customers are paying for the pension deficit through higher stamp prices, agreed with Postcomm in the 2006-2010 price control review,” he said.

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Post Office Ltd announces plans for sites in North West England

Post Office Ltd opened a six-week local public consultation on its Area Plan for Merseyside, Wirral, Cheshire, Wigan, Leigh and Makerfield with the criteria and factors set by the Government in its Response Document (DTI The Post Office Network, Government response to public consultation May 2007 – www.dti.gov.uk/consultations/page36024.html). The Area Plan proposes future provision of Post Office services through a network of 371 branches across the area including six outreach service points while 65 existing branches would close (see full list below).

Under the proposals, more than 99 pct of the area’s population will either see no change, or will remain within one mile (by road distance) of an alternative branch.

The six outreach services would use innovative ways to continue to provide Post Office services- particularly in smaller communities – where the existing branch is proposed for closure.

Possible types of outreach service in the Merseyside, Wirral, Cheshire, Wigan, Leigh and Makerfield area could include a mobile service visiting small communities at set times, a hosted service operated within a third party premises for restricted hours each week, or a partner service within the premises of a local partner such as a pub landlord.

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Royal Mail prepares for Christmas

Royal Mail is gearing up for its busiest time of the year, handling an anticipated over 2 billion letters and cards during the festive period.

Royal Mail predicts Monday 17 December to be its busiest day of the year. 123 million items are expected to enter the system that day compared to an average daily figure of 83 million.

The last recommended posting dates for UK mail are Thursday 20 December for 1st Class and Monday 17 December for 2nd Class items. For Special Delivery items, the last recommended posting date is 22 December. For airmail items to Western Europe, the last recommended posting date is 13 December; for Eastern Europe, the USA, Canada and Japan it is 10 December; and the rest of the world is 7 December.

Royal Mail is releasing millions of new stamps well in time for all last posting dates. Available from today (6th November) in 1st Class, 2nd Class, 78p and GBP 1.24 values, the stamps depict angels and the Madonna & Child. The angels 1st and 2nd Class Christmas stamps are available in two sizes so that people can use the angelic images on Large Letters, parcels and packets this Christmas.

Julietta Edgar, Head of Special Stamps, Royal Mail, said: “Christmas is most certainly Royal Mail’s busiest time of year, but luckily we have plenty of experience in dealing with the postbag upsurge.

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Palletline celebrates 15 years leading the field

More than 300 members, customers and guests from across the UK gathered at the Hilton Birmingham Metropole Hotel for a special gala event to celebrate the 15th anniversary of Palletline, the UK’s most experienced palletised freight distribution network.

Established in the autumn of 1992, Palletline established the model for all the other networks founded since then and now handles more than 8,000 pallets each night – a far cry from the first night when just a few hundred pallets went through the hub.

Guests enjoyed a drinks reception followed by a sumptuous dinner and entertainment by magician Paul Daniels and comedian David Copperfield.

Palletline Director Kevin Buchanan stated: “The Palletline network has come a long, long way since 1992 but what has not changed are our traditional values of reliability, integrity and top-quality customer service.

“Palletline remains very much the model that other networks still follow and with further plans for network expansion and new initiatives to further enhance operations and service quality, very exciting times lie ahead for us.”

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