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Sustaining the universal postal service

20 Oct 2019, 11:31

Being any change to the USO has been indicated as major reason for possible job losses, I have edited this from Ofcom’s Annual Plan Our programme of work for 2019/20. Not sure if decision will be made in tax year 219/20 or 20/21.

Sustaining the universal postal service. Published 25 March 2019

3.26 Many people and businesses rely on the universal postal service. We have a duty to secure the universal postal service, and monitor on Royal Mail’s performance and finances.

3.27 In light of the continuing decline in the letters market and broader changes in the parcels’ market and customers’ expectations, we propose to enhance our monitoring of Royal Mail.
We will bring forward some of the work we had planned to undertake as part of our next review of the regulation of Royal Mail which, as we set out in spring 2017, we intended to undertake by 2022.

3.28 In the next financial year, in addition to our current work programme, we will: • Carry out a review of Royal Mail’s efficiency. This work will give us more insights into the likely future sustainability of the universal postal service. We intend to provide our latest view on the sustainability of the universal postal service in Q3


A3.146 Under our duties relating to the universal postal service we must take a high-level view of Royal Mail’s costs. The cost model helps us to gain better insights into the cost elements of the business. This is particularly important in light of Royal Mail’s unscheduled trading update issued in October 2018 where performance on efficiency did not match Royal Mail's expectations.

A3.147 Our cost modelling work is intended to provide a high-level view of Royal Mail's costs. It is for Royal Mail to decide the detail of how it runs its operations; we also note that Royal Mail is currently considering its strategy and undertaking a review of its network. In relation to efficiency, we continue to believe that efficiency remains critical to the sustainability of the universal service.

Sustaining the universal postal service

20 Oct 2019, 20:06

efficiency = cuts / minimum wage / zero hour / flexibility

Sustaining the universal postal service

20 Oct 2019, 21:03

Phantom wrote:efficiency = cuts / minimum wage / zero hour / flexibility

NOT WITHOUT A CONSOLIDATED UNIONISED FIGHT FOR WORKERS JOBS/RIGHTS AND CONDITIONS FIRST, YA PESSIMIST. :coolr

Sustaining the universal postal service

20 Oct 2019, 21:08

rogersh wrote:Being any change to the USO has been indicated as major reason for possible job losses, I have edited this from Ofcom’s Annual Plan Our programme of work for 2019/20. Not sure if decision will be made in tax year 219/20 or 20/21.

Sustaining the universal postal service. Published 25 March 2019

3.26 Many people and businesses rely on the universal postal service. We have a duty to secure the universal postal service, and monitor on Royal Mail’s performance and finances.

3.27 In light of the continuing decline in the letters market and broader changes in the parcels’ market and customers’ expectations, we propose to enhance our monitoring of Royal Mail.
We will bring forward some of the work we had planned to undertake as part of our next review of the regulation of Royal Mail which, as we set out in spring 2017, we intended to undertake by 2022.

3.28 In the next financial year, in addition to our current work programme, we will: • Carry out a review of Royal Mail’s efficiency. This work will give us more insights into the likely future sustainability of the universal postal service. We intend to provide our latest view on the sustainability of the universal postal service in Q3


A3.146 Under our duties relating to the universal postal service we must take a high-level view of Royal Mail’s costs. The cost model helps us to gain better insights into the cost elements of the business. This is particularly important in light of Royal Mail’s unscheduled trading update issued in October 2018 where performance on efficiency did not match Royal Mail's expectations.

A3.147 Our cost modelling work is intended to provide a high-level view of Royal Mail's costs. It is for Royal Mail to decide the detail of how it runs its operations; we also note that Royal Mail is currently considering its strategy and undertaking a review of its network. In relation to efficiency, we continue to believe that efficiency remains critical to the sustainability of the universal service.

Comment is free, but facts are sacred. thank you for this (above). :cool

Sustaining the universal postal service

22 Oct 2019, 21:28

The initial up to 20k job losses derive from the new parcel strategy and 'efficiency measures'.
Negotiations for changes to the USO were brought forward to the last months of 2020.
The second lot of 20k job losses would come from changing to a five day operation via the USO negotiations. This change obviously isn't a certainty but it is an obvious way to significantly reduce employment costs and the precedent has been set for this change by the IOMPO this week.

Sustaining the universal postal service

22 Oct 2019, 22:17

Celgar your post concurs with information I received from CWU which states. "Royal Mail is openly talking about at least 20,000 job losses over the next 5 years. If the USO is downgraded this figure could be even greater."
Also; "We must protect the universal service obligation (USO) - the loss of just one day's service would cost 20,000 jobs."

My questions are;
Why did Ofcom decide to bring forward its review?
Do Ofcom make the decision if the USO is sustainable or otherwise?
Do Royal Mail have any influence or input on the decision by Ofcom?
Royal Mail have stated they want a "sustainable" USO, However the CWU appear to have interpreted this as a reduction in the 6 day letter delivery obligation at present to 5 days. Are they both presuming Ofcom would recommend that particular change?

Sustaining the universal postal service

23 Oct 2019, 18:52

rogersh wrote:Celgar your post concurs with information I received from CWU which states. "Royal Mail is openly talking about at least 20,000 job losses over the next 5 years. If the USO is downgraded this figure could be even greater."
Also; "We must protect the universal service obligation (USO) - the loss of just one day's service would cost 20,000 jobs."

My questions are;
Why did Ofcom decide to bring forward its review?
Do Ofcom make the decision if the USO is sustainable or otherwise?
Do Royal Mail have any influence or input on the decision by Ofcom?
Royal Mail have stated they want a "sustainable" USO, However the CWU appear to have interpreted this as a reduction in the 6 day letter delivery obligation at present to 5 days. Are they both presuming Ofcom would recommend that particular change?

1) Best guess would be that RM asked for the review to be brought forward.
2) I presume Ofcom is the office/quango is responsible for the USO and how it operates.
3) RM will say they are fighting a losing battle with all the cards stacked against them. We as posties know the current regime with issues such as the DSA and the competition abusing the self employed status of their employees isn't fair or 'sustainable'. So yes RM have evidence and statistics to back up their stance that something needs to change within the USO.
4) I and I think most posties doubted that RM would ever switch to a five day operation by dropping the Saturday maybe entirely as a delivery day. The basis of competition law is enshrined in European law and even if Brexit happens the UK is still going to be compliant with their regulations therefore the DSA cannot be removed. The government seems to think how the self employed status is being used is fine and they get reduced unemployment so they are happy I guess. This just leaves changes such as every other day delivery for letters & flats or moving to a five day operation. Many other countries national postal services have chosen the former and this week the Isle of Man postal service have dropped to a Monday to Friday service. So the likelihood is the USO will be weakened or changed in some way. Both these options will save RM a lot of money and result in thousands of job losses.
The primary threat is the new parcel strategy which involves the most profitable section of the business, and probably our future, being taken from DOs and given to LAT hubs with the possibility of new staff working on lesser contracts. This will be the death of our jobs as in the medium to long term the DOs will no longer be 'economic'. If we don't stop this it is the end.

Sustaining the universal postal service

30 Oct 2019, 17:54

Any update tonight?.

Sustaining the universal postal service

30 Oct 2019, 21:05

Rommagic wrote:Any update tonight?.


Terry Pullinger responded to the question - Will the business commit to you in the talks to the 6 day USO?
"No, no what they keep saying is a contemporary USO."

Sustaining the universal postal service

31 Oct 2019, 09:55

Celgar wrote:
rogersh wrote:Celgar your post concurs with information I received from CWU which states. "Royal Mail is openly talking about at least 20,000 job losses over the next 5 years. If the USO is downgraded this figure could be even greater."
Also; "We must protect the universal service obligation (USO) - the loss of just one day's service would cost 20,000 jobs."

My questions are;
Why did Ofcom decide to bring forward its review?
Do Ofcom make the decision if the USO is sustainable or otherwise?
Do Royal Mail have any influence or input on the decision by Ofcom?
Royal Mail have stated they want a "sustainable" USO, However the CWU appear to have interpreted this as a reduction in the 6 day letter delivery obligation at present to 5 days. Are they both presuming Ofcom would recommend that particular change?

1) Best guess would be that RM asked for the review to be brought forward.
2) I presume Ofcom is the office/quango is responsible for the USO and how it operates.
3) RM will say they are fighting a losing battle with all the cards stacked against them. We as posties know the current regime with issues such as the DSA and the competition abusing the self employed status of their employees isn't fair or 'sustainable'. So yes RM have evidence and statistics to back up their stance that something needs to change within the USO.
4) I and I think most posties doubted that RM would ever switch to a five day operation by dropping the Saturday maybe entirely as a delivery day. The basis of competition law is enshrined in European law and even if Brexit happens the UK is still going to be compliant with their regulations therefore the DSA cannot be removed. The government seems to think how the self employed status is being used is fine and they get reduced unemployment so they are happy I guess. This just leaves changes such as every other day delivery for letters & flats or moving to a five day operation. Many other countries national postal services have chosen the former and this week the Isle of Man postal service have dropped to a Monday to Friday service. So the likelihood is the USO will be weakened or changed in some way. Both these options will save RM a lot of money and result in thousands of job losses.
The primary threat is the new parcel strategy which involves the most profitable section of the business, and probably our future, being taken from DOs and given to LAT hubs with the possibility of new staff working on lesser contracts. This will be the death of our jobs as in the medium to long term the DOs will no longer be 'economic'. If we don't stop this it is the end.
Last edited by Binsey on 02 Nov 2019, 16:23, edited 1 time in total.

Sustaining the universal postal service

02 Nov 2019, 15:21

Royal Mail states ..."it's important we deliver a Universal Service that's right for customers in the 21st Century".
It appears this defines the use of the word "Contemporary" apparently used in the talks.

The review by the regulator has commenced & the decision is much-anticipated.

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