Ofcom to criticise Royal Mail efficiency

[POSTMAN]

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The communications regulator is expected to slam inefficiencies at the Royal Mail in its annual update on the postal sector next month, The Independent understands.

It is thought that Ofcom will echo criticisms made by Whistl (formerly TNT Post) that Royal Mail “lags behind” other European Union postal services in a number of areas, including cost reduction and work flexibility.

In a submission to the Commons Business Select Committee, which is holding an inquiry into the threat of competition to the universal service, Whistl has argued that Royal Mail’s own figures suggested that “productivity is not a sufficiently high enough management priority”.

Should Ofcom agree, this will undermine Royal Mail’s push to enforce new regulation on Whistl and other potential rivals in delivering mail directly to homes and small businesses. Royal Mail’s chief executive, Moya Greene, believes Whistl’s emergence in this market, with direct delivery in Manchester, Liverpool and London, threatens the universal service.

Royal Mail, which was part-privatised last year, is obliged to deliver to all 29 million UK addresses, including remote homes on loss-making routes. Whistl does not have the same obligation and so can “cherry-pick” where it delivers, resulting in lower costs and therefore lower charges, it is argued.

Royal Mail wants fresh regulation that could see competitors forced to deliver to every home and business in any region they serve for a set minimum of days per week.

Industry sources suggest that Ofcom is unmoved by the idea, as it wants to foster competition in a sector that can have high start-up costs. Regulators also believe that competition to the five-century-old postal service is at “such a nascent stage”, with Royal Mail still delivering 99 per cent of mail, that further requirements are unnecessary. “Ofcom doesn’t think that the universal service is under threat at the moment,” added a source.

However, MPs are known to be sympathetic to Royal Mail arguments, particularly after it said last week that its annual profit had fallen from £353m to £279m. They will grill Ms Greene and her counterpart at Whistl, Nick Wells, at a hearing of the Business Select Committee on Wednesday.

[Patrick301]

they wont be happy until we are earning less than the minumum wage on zero hour contracts and forced to go home during quite periods and get no pay or told not to come in at all on quite days again with no pay

[britwrit]

Yes. Let's have a heavily regulated yet completely free market.

[Lounge Lizard]

" ...... criticisms made by Whistl (formerly TNT Post) that Royal Mail “lags behind” other European Union postal services in a number of areas, including cost reduction and work flexibility."
Incredible that Whistl criticises Royal Mail for lagging behind in cost reduction and work flexibility.
Surely any company would normally delight in any failings of a competitor.

[SW17]

Maybe they should keep an eye on things a bit closer to home regarding efficiency, there posties deliberately take time to do there rounds as they get paid by the hour even though they are apparently tracked by there pdas, stopping off at friends houses or taking extended breaks.
As for there quality of service it is abysmal at best, I am often recording photos of there mail stepped on my phone and am always having customers trying to give me there mail back that's been incorrectly delivered, they also step anything that wont go through a letter box as they have no means of collection or a re-delivery service, I then have to explain that there is another company delivering mail and it has nothing to do with Royal Mail, also customers try to give me mail that's meant for redirection saying that there family or old residents have paid for a redirection service, I also have to explain the reasons why this is not happening.
I also believe Ofcom wont do anything because they are in bed with the government and its all to do with job numbers, apparently there postie jobs are only offered to people that have been signing on for a period of time to help with jobless numbers but i'm not 100% on that?
Need the zero hour contracts to be abolished to perhaps hurt them a bit.

[Chelseablue]

Vote labour next time might help a bit

[halfull]

Vote labour next time might help a bit

[pants123]

criticisms made by Whistl (formerly TNT Post)

really,,,, well is it not whistl employ people on the minimum wage, and their delivery staff just dump mail in fields all the time...

OFCOM have seem not to mention that, the WHOLE STATEMENT IS A JOKE...

[clashcityrocker]

and their delivery staff just dump mail in fields all the time...

.

That's a bit like saying we all steal the mail because a few RM staff have been caught.

[deltaforce]

I guess when the present no redundancy agreement lapses , conditions and flexibility will move more inline with the market. Glad I've only got six years left.

[rubberbond]

Vote labour next time might help a bit

In what way exactly?