Tag: UK

Royal Mail admits GBP4.5bn black hole will force up stamp prices

Royal Mail is to force customers to pay for its GBP4.5bn pension fund deficit with plans to raise stamp prices to plug the black hole.

The revelation is contained in minutes of a high-level meeting between executives of Britain’s postal industry, hosted by the regulator Postcomm last month.

Royal Mail insists that no decision has been taken on how to reduce its pensions gap. But at the meeting, Stephen Agar, Royal Mail’s director of regulatory affairs, said: ‘Prices have been too low to fund the deficit. Pensions are a real cost that customers should bear.’

The disclosure comes as ministers are preparing to review proposals by Royal Mail’s chairman, Allan Leighton, for the Government to hand over 51 per cent of the state-owned company to the workers and take on some of the pension liabilities.

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UK postal chiefs in dark over Bain official remit

The postal industry is calling for an official summit with newly appointed Government adviser Sir George Bain, who will scrutinise key proposals in the run up to market liberalisation. Despite overwhelming industry support for his appointment, the postal sector claims it is still in the dark about the extent of Bain’s remit. Nigel Stapleton, chairman of Postcomm, states: “It is not clear whether this is a review or something much less formal.” A Department of Trade & Industry spokesman explains: “He will be examining the relationships between Royal Mail, its regulators and unions, ensuring a strong working partnership.”

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Bain seeks to end pain at Royal Mail

In his new role as chief Government adviser on Royal Mail, Sir George Bain has broad industry support. But he has his work cut out as critics of pricing in proportion keep up the pressure. Two weeks ago, Alan Johnson, Secretary of State for the Department of Trade & Industry (DTI), raised a few eyebrows by announcing that Canadian-born Sir George Bain would assist ministers with key postal issues. He had been expected to call an independent review of Postcomm’s proposal to open up the market to competition ahead of the rest of Europe.
This week, however, Bain appears to be riding a wave of overwhelming support from the postal sector. A Communication Workers Union spokesman comments: “The Government has clearly recognised that there needs to be a more honest appraisal of Postcomm’s proposals.” It is a sentiment echoed by Institute of Practitioners in Advertising head of direct marketing David Payne: “Postcomm’s actions are significant, and, while Postwatch is doing a great job, there is a need for the Government to oversee key decisions.

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UK Royal Mail Offers GBP400 Bonuses

The Royal Mail is to pay postal workers a pounds 400 bonus if profits reach pounds 600m in the current financial year. The “share in success” scheme will include all 195,000 delivery, sorting office and counter staff. Employees were given details of the proposed bonus yesterday, although the Royal Mail warned it faced a “challenging” year as it gears up for full-blown competition. The organization made an operating profit of pounds 537m in the last financial year.

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UK Royal Mail pledges profits bonus

The Royal Mail has agreed to pay postal workers a GBP400 bonus each if its profits reach GBP600m in the current financial year, its employees were told. The scheme, which will involve all 195,000 staff, follows the GBP1,074 bonus given to each worker earlier this year to reward performance over the three years from 2002-03 to 2004-05.

Announcing details of the bonus, Royal Mail warned it faced a “challenging” year as it gears up for full blown competition in the postal market from January 1. The organisation made a record profit of GBP537m in the last financial year. The government has announced an internal review, starting in September, into the future of the state-owned company, and ministers have signalled support for Royal Mail’s proposals to give an equity stake to employees.

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