Resourcing problems, fatigue, missed targets and extra workers are issues with RM’s trial cuts
As posties’ reps the Communication Workers’ Union revealed the issues with Royal Mail’s 37 pilots for its hoped-for cuts to the universal service obligation, the delivery service’s new owner has confirmed it is setting up the promised advisory committee.
In addition Daniel Kretinsky, the Czech billionaire behind the total £5billion takeover of Royal Mail and its parent company International Distribution Services, has installed himself as chairman of IDS and the UK’s 509-year-old national postal operator.
The news came just after the CWU, which represents the majority of the 130,000-strong RM workforce, published its promised update to members on the pilot units on Wednesday, 25 June, reporting back from representatives on the ground.
Of the 37 chosen only 35 were named in the report – Hadleigh, Southend, Mount Pleasant W1, North Finchley, Stoke Newington, Bullwell, Carlton, Nottingham North, Melton Mowbray, Coventry North, Brinklow, Hexham, Darlington, Stockton, Louth, Hull Malmo Road, Scunthorpe, Preston South, Lytham, Fleetwood, Newton Mearns, Cumbernauld, Girvan, Ayr, Winchester, Romsey, Salisbury, Tonbridge, Tenterden, Blackwood, Usk, Pontypool, Trowbridge, Clifton and Cheltenham – and of these, the CWU said 33 had been deployed, although a number had only actually put the pilots into action in May and June, despite the trials having been announced back in February.
Currently RM is legally obliged to deliver letters six days a week for the same price to all UK addresses but, in the public consultation which ended on 10 April, Ofcom put forward Royal Mail’s bid to cut its USO targets, and allowed the delivery service to try out its proposals to slash second-class deliveries to every other day, three days one week and two the next with only first-class letters being delivered Monday to Saturday.
The offices had a choice of various duty patterns to implement RM’s plans, but all seem designed to give more Saturdays off, at least 17 a year, while the Option G chosen by Stoke Newington, among others, was described as “an improved version that requires 17 working days out of every 24 and provides two Saturdays off out of four” giving 23 a year, but the office only went live with its trial on Monday, 30 June.
However, as GCA CEO Amanda Fergusson commented: “Where is the customer in this? There’s lots of talk in this report of liking the reduced workload on Saturdays but my understanding of the 2022 strikes was that RM wanted to bring working practices into line with the 24/7 economy.”
Cumbernauld reported: “Overall members are happy with the increased Saturdays off, but the longer daily shifts are challenging.”
Scunthorpe reported first-class delivery targets are being met, but not the second class, and there’s talk of bottlenecks in the delivery office, which makes it look like losing the Saturday second-class rounds doesn’t seem to be working.
At South Central/Southampton MC, covering Winchester, Romsey and Southampton, “fatigue is reported to be a problem at all three, with a feeling that there is not enough flexibility in the system to take account of unexpected circumstances, such as sick absences or a sudden traffic surge”.
And the following comment: “Resourcing problems are being flagged up and there are efforts to recruit, but the time taken to train new recruits is another short-term challenge overall,” along with a number of other mentions of part-time jobs becoming full-time, vacancies being filled and workers being recruited, does seem to bring into question Royal Mail’s plans to cut staffing levels with this scheme.
Also from the South Central pilots, the report stated: “There is an interesting indication of customer response to the pilot, with reps in the division reporting that some customers who previously sent out magazines, gift cards and periodicals, have switched from second-class mail to first-class. This has, so far, had a significant effect on combined days.”
This increase fits with the comments made in the first report released last week as a video from the Hexham delivery office, where union officials confirmed they are seeing an increase in letter volumes at a time of year which is usually one of the quieter periods and, while acknowledging this is good for business, they pointed out that it’s difficult to manage because of the staffing levels and trial cuts.
The full update can be read here and there’s also a CWU Live podcast episode available here where host Michael Walker talks to the union’s assistant secretary Tony Bouch and local reps from the trial sites about what’s working, how things are going and what’s next.
Amanda added: “We have had meetings at the Department of Business & Trade and been into Ofcom several times now – we understand there needs to be change. We’re business people, we know Royal Mail have to make profit, and we understand there are changes in consumer behaviour, however, we know there is demand for letters.
“The Hexham example demonstrated what we’re seeing. People are still sending letters. They need the letter service, and they want to be able to rely on it. It needs to be reliable and affordable, and we want to see a thriving Royal Mail, the greeting card industry needs it, small businesses and consumers across the country need it.”
As part of the report, the CWU reiterated that there will be a post implementation review (PIR), which has already started in some of the pilot offices, and the union stated: “There will be no full deployment of USO reform until we have evaluated and remedied any issues from the ongoing pilot offices via the agreed PIR process and success criteria.”
However, many of the comments from workers under the relevant posts on the CWU Facebook page indicated that numerous sites across the country that aren’t part of the pilot scheme are already having changes made to infrastructure to facilitate the different sorting procedures required by the cuts, and staff have been told it will definitely be happening.
This is despite RM’s then-CEO Emma Gilthorpe being slapped down by industry watchdog Ofcom on 3 June for announcing a change to second-class deliveries when the matter is still under consultation – the company had jumped the gun by telling customers the hated proposed cuts to second-class mail and the USO would go live from 7 July.
The industry watchdog is still examining feedback from the public consultation earlier this year and said: “We will publish a statement setting out our decisions in summer 2025. Until that point, the existing regulations remain in place.”
Meanwhile, it was revealed on Friday, 27 June, that Daniel Kretinsky has honoured the commitments he and his corporate vehicle EP Group made to win the Labour government’s support for the takeover.
These include the issuing of a golden share in the business to the government, although there are no voting rights so ministers cannot influence the company policies, nor any economic benefits, but it does have “certain reserved matters attached to it that require the prior written consent of the holder of the share”, which includes a commitment that ,although Royal Mail is in foreign hands, it will remain headquartered in the UK and stay as a British entity for tax domicile purposes.
A statement from EP Group also confirmed Royal Mail’s articles of association have changed to include the establishment of an advisory committee, which it had promised to both the company’s main trade unions, the CWU and Unite, as well as to the Competition & Markets Authority. The CWU dropped opposition to the takeover as it will be represented on such a committee.