Royal Mail Chiefs Deliver Plea For Reforms

[TrueBlueTerrier]

http://news.sky.com/story/1354413/royal ... or-reforms" onclick="window.open(this.href);return false;

The chairman and chief executive of Royal Mail have implored the communications regulator to accelerate a review of postal markets or risk jeopardising its ability to deliver across the UK at a single fixed price.

Sky News has learnt that Donald Brydon, the company's chairman, and Moya Greene, chief executive, attended a board meeting of Ofcom this week to argue that a decision to delay an investigation into the direct delivery market is proving to be commercially disastrous for the former state monopoly.

Since listing on the stock market as part of its contentious £3.3bn privatisation a year ago, Ms Greene has consistently complained that rival TNT Post's UK expansion plans could cost Royal Mail £200m in lost revenue by 2017, threatening the USO.

Ofcom has said that it will commence a review by the end of next year, which Royal Mail's bosses are said to have told the regulator this week is much too late.

Mr Brydon and Ms Greene want the end-to-end delivery investigation to be combined with another inquiry into access pricing.

People close to Royal Mail indicated that Ofcom had not been sympathetic to Royal Mail's request to accelerate the probe, although Ofcom said it had yet to reach a final decision, which is likely to be made within weeks.

Reiterating previous statements on the issue, a spokesman for the regulator said:

“Protecting the universal service is at the heart of Ofcom’s work, and our own evidence clearly shows that the service is not currently under threat.

“We are listening to the views of Royal Mail and other parties regarding competition in the market. We would assess any emerging threat to the service quickly, in the interests of postal users.”

A source confirmed that Mr Brydon and Ms Greene had attended the board meeting but added that it was not uncommon for senior industry figures to argue their case in person to the regulator's directors.

Separately, Ed Richards, Ofcom's outgoing chief executive, is understood to have met MPs in Westminster yesterday to discuss the direct delivery issue.

Royal Mail's shares have had a bumpy ride since last autumn's sale by the Government.

They initially surged, leading to accusations that Vince Cable, the Business Secretary, had cost the taxpayer £1bn by underpricing them.

However, the UK regulatory framework, an impending financial settlement with French competition authorities and the growing impact of greater competition - exemplified by Amazon's launch this week of a same-day delivery service - have weighed on Royal Mail shares in recent months.

On Thursday, they traded at just over 403p, roughly 20% above the price at which they floated last year.

Taxpayers continue to own 30% of Royal Mail, although there is little prospect of a sale of the remaining shares ahead of next year's General Election.

Royal Mail declined to comment on its discussions with Ofcom.

[Red Robbo]

No pay rise next year then ?

[tansorboy]

No pay rise next year then ?

Pay rise guaranteed for us for the next two years. Moya doesn't need one.

[daveyeff]

No pay rise next year then ?

Pay rise guaranteed for us for the next two years. Moya doesn't need one.

about a tenna in 2015. up for negotiation in 2016. or is it 2017? I think its 16 though.

[aiden01]

defo 2016

[north london driver]

you may get a pay-rise but what contract will you all have 20 hours or 25 hours.our union is keeping us in the dark on this
give it 3-5 years and there will be no full-timers in royal mail.you will either be offered a buy-down of hours or e v r.

[daveyeff]

well a lot of senior staff ( me included) do want to get out and if evr came up we would gladly take it. but if the union allows the workforce to be chopped like that then they are signing their own death warrant

[Lounge Lizard]

well a lot of senior staff ( me included) do want to get out and if evr came up we would gladly take it. but if the union allows the workforce to be chopped like that then they are signing their own death warrant

Yes many will welcome EVR but management well know that so can, and will, offer it on pretty poor terms, definitely not with the generosity of yesteryear.

[on_the_way_OUT]

well a lot of senior staff ( me included) do want to get out and if evr came up we would gladly take it. but if the union allows the workforce to be chopped like that then they are signing their own death warrant

Yes many will welcome EVR but management well know that so can, and will, offer it on pretty poor terms, definitely not with the generosity of yesteryear.

Completely agree!!

[fishtank]

No pay rise next year then ?

Pay rise guaranteed for us for the next two years. Moya doesn't need one.

about a tenna in 2015. up for negotiation in 2016. or is it 2017? I think its 16 though.

Even 2015 looks iffy.

 From 6 April 2015 – 4 April 2016:
An increase of 2.8% on basic pay rates, basic pay supplements, allowances, skills and
unsocial hours allowances, London Weighting and Scottish Distant Islands Allowance,
overtime and scheduled attendance rates, subject to review if inflation (as measured by the average monthly RPI in the period January – March 2015) is below 2.3% or above 3.3%.

It's sitting at 2.3% right now.

[daveyeff]

so what is the ''review'' if it falls below 2.3

[TrueBlueTerrier]

so what is the ''review'' if it falls below 2.3

The same as if its above - both sides talk for ages and we eventually either get a pay rise or not.

[k979aaa]

so what is the ''review'' if it falls below 2.3

The same as if its above - both sides talk for ages and we eventually either get a pay rise or not.

Or we go on strike may need a vote for it though but the money grabbing twats voted the last agreement in last time didn't they all.