CWU calls for cap on competition to Royal Mail

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Regulator Ofcom should introduce an immediate cap on competition to Royal Mail said the CWU today (Friday).

Royal Mail The union said a cap would help to "support a healthy, sustainable level of competition in the postal sector" and ensure the future of the universal service obligation (USO), which it believes is currently being undermined by the ability of rival companies to cherry pick profitable city locations.

"We believe a cap will help to support a healthy, sustainable level of competition in the postal sector"
Billy Hayes, general secretary

The call came in the CWU's submission to the Business, Innovation and Skills (BIS) Select Committee which sought evidence for its inquiry into competition in the UK postal sector and the universal service obligation.

Royal Mail has a legal obligation to provide a one-price-goes-everywhere postal service, and to deliver once a day, six days a week to all UK addresses.
Billy Hayes 2010 Billy Hayes, CWU general secretary, said: "Ofcom must urgently put a cap on unregulated competition to Royal Mail if it wants to secure the future of the universal postal service. At the moment it seems to favour its duty to promote competition in the postal sector instead of ensuring the financial sustainability of the USO.

"Customers receive a good quality service from Royal Mail's postmen and postwomen and competitors rely on the flexibility of the universal service, which allows them to pass on responsibility for delivering high-cost mail.

"The universal postal service is highly-valued by the British public and essential to a fully functioning economy and society. We believe a cap will help to support a healthy, sustainable level of competition in the postal sector."

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