strike 'would deliver £1.5billion blow struggling economy

[Geezer]

National postal strike 'would deliver £1.5billion blow to struggling economy

http://www.dailymail.co.uk/news/article ... onomy.html

By Sean Poulter
Last updated at 10:47 PM on 12th October 2009


A national postal strike would cost the economy £1.5billion in terms of lost orders, extra administration and higher delivery costs, a survey claims.

At the same time, it would have a massive impact on the troubled Royal Mail, which would lose tens of millions of pounds in income as its business customers switch to rivals.

Consumers who rely on the post to pay utility bills and manage their credit card bills also face enormous disruption and a risk of penalty charges.
Royal Mail would lose millions of pounds in business because of the strike, according to a new survey

And charities face huge difficulties because of the impact on festive mailshots and the sale of Christmas cards.

The last national strike in 2007 led to a backlog of more than 100million letters and generated losses for businesses in London alone of some £300million.


Research by the online shopping portal Kelkoo puts the cost of another strike in the run-up to Christmas at £1.5billion. It believes online retailers would lose some £220million, with another £50million lost by bricks and mortar stores.

Kelkoo said online firms face lost orders and a big increase in the cost of ensuring deliveries are made.

For example, delivery prices for some firms would rise from £1.90 per package with Royal Mail to around £4.80 with Parcel Force - a 153 per cent mark-up.
Retailers such as Amazon are dealing with other postal carriers to avoid disruption to deliveries

Retailers such as Amazon are dealing with other postal carriers to avoid disruption to deliveries

Kelkoo UK managing director, Bruce Fair, said: 'The timing of the strike beggars belief. In one fell swoop it threatens to bring the postal network to a standstill, spoil the beginnings of the retail sector's financial recovery, increase prices for cash-strapped consumers and cause a huge mail backlog.'

Three in four businesses are actively considering dropping Royal Mail as their postal services provider, according to a survey of 250 firms by the British Chambers of Commerce.

Its economic policy adviser, Steve Hughes, said: 'The results of this survey are quite explicit. Businesses are very upset by what's happening and they're worried about how it will affect their services. All they want is consistency.

That means the Royal Mail providing a service they can rely on and at the moment they can't do that.'

The trade secretary, Lord Mandelson, has made clear that the Government has no intention of trying to head off the strike.

This inaction has been condemned by union leaders and business chiefs, including the internet retail trade body, the IMRG.

Its operations director, David Smith, described the lack of Government action as 'dangerous'.

He said: 'We have a very fragile economy at the moment and a strike is the very last thing we need. For a lot of small online retailers, which rely on Christmas for the majority of their sales, it is very difficult to find alternative delivery services.

'If consumers start thinking it is too risky to make orders online, that will be very serious.'

He said: 'The Government is trying to stimulate confidence in the broader market and get consumers shopping again. The last thing we want is barriers to that. It is very dangerous to do nothing.'

Business Minister Pat McFadden said the strikes were 'counterproductive' - not in the interests of either Royal Mail or its workers.

'We have put in money for Royal Mail to bring in new machines and automate. That is what needs to be done, not strikes,' he told GMTV

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[britwrit]

And dozens upons dozens of the Parliamentary Labour Party will find themselves out of work come May!!!! (Sorry - Daily Mail-speak is infectuous.)

Still, why do they have to be so negative? Why can't we see a headline like "Postal Strike to Save the High Street"?

[Eric]

Anyone else see similarities with the crisis caused by the bankers? Just like Crozier and his cronies the bankers paid themselves enormous bonuses for hitting their targets whilst bringing the country to its knees. Like the banks the Royal Mail has achieved its short term goals by dubious means but the country will suffer enormously over the longer term.

[spilie]

whats all the fuss we keep hearing volumes down, credit crunch and competition, so let the so called competition rake in the massive profits that this strike will surely bring them, after all the free market drives prices down, doesnt it!!!!!!!!!!!!!!!!!!!!!!!!!!!!!

[El-Bandito]

strike 'would deliver £1.5billion blow struggling economy, Its all good!!!!!!

[Darren Bent]

At least it is good news for us as businesses are complaining about the effect of strike. Maybe it will put pressure on Royal Mail and CWU to sort it out. I wish I could get Royal Mail, Government and CWU in one room and leave them with bread and water. If no solution found we will leave them locked in until a solution is found whether it take 6 hours or 6 weeks. Knowing them it will take 6 months.

[banner18]

At least it is good news for us as businesses are complaining about the effect of strike. Maybe it will put pressure on Royal Mail and CWU to sort it out. I wish I could get Royal Mail, Government and CWU in one room and leave them with bread and water. If no solution found we will leave them locked in until a solution is found whether it take 6 hours or 6 weeks. Knowing them it will take 6 months.

The only solution for the Government is privatisation. The shadowy elite have wanted privatisation for decades. Trouble is coming.....

[DGP1]

At least it is good news for us as businesses are complaining about the effect of strike. Maybe it will put pressure on Royal Mail and CWU to sort it out. I wish I could get Royal Mail, Government and CWU in one room and leave them with bread and water. If no solution found we will leave them locked in until a solution is found whether it take 6 hours or 6 weeks. Knowing them it will take 6 months.

You're too nice, bread and water although I suppose Billy would be the first one to go

[bandit650]

Mr crozier and his cronnies will always be remembered for the men who killed Royal Mail off,i should imagine firms will be lining up with offers of new work For the man who took the Queens mail into a dispute when the olive branch had been offered.

[POSTMAN]

would deliver £1.5billion blow

Anybody got any idea what it was in 07,or has inflation hit.