Royal Mail requests suspension of penalty payments
Royal Mail has asked the postal regulator to suspend rules that force it to compensate customers if it is unable to meet service targets because of industrial action by staff.
The request was submitted to Postcomm after the Communication Workers Union decided to ballot its members in a vote that is expected to support industrial action when the result is announced on Thursday.
Under the terms of its licence, Royal Mail must compensate business customers if it fails to meet its service targets for delivering bulk mail on time. Its prices for all users can also be pegged back in the following year if service falls below acceptable levels.
Royal Mail has told the regulator the risk of incurring hefty penalties could force it to shelve its modernisation plans to head off disruptive industrial action.
That would undermine its drive to become more efficient for the benefit of all postal users and its staff, whose job security would be threatened.
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