LTB 782:2014 OFCOM'S DECISION ON DIRECT DELIVERY COMPETITION

[TrueBlueTerrier]

Letter to Branches




No. 782/2014
Ref: 21100
Date: 2nd December 2014


TO ALL BRANCHES WITH POSTAL MEMBERS



Dear Colleague

OFCOM’S DECISION ON DIRECT DELIVERY COMPETITION

As you may be aware, Ofcom has today published a response to Royal Mail’s submission on direct delivery competition, rejecting Royal Mail’s call for regulatory intervention over Whistl’s expansion plans (formerly TNT). It has also announced a consultation on changes to access pricing and a broader review of the sustainability of the universal service, covering Royal Mail’s efficiency and competition in the parcels market.

While Ofcom is briefing the media that the announcements today are ‘new measures to secure the universal service’, it is clear to us that its continued failure to act threatens the future of the USO and CWU member’s employment standards. Today’s decision does not come as a surprise to us in light of the regulator’s recent statements, but it underlines the need for the union to now step up our campaign.

In particular branches should be aware that Ofcom has highlighted the benefits of competition to efficiency and cost reduction. We have argued that this amounts to an attack on terms and conditions in Royal Mail and this is clear from the fact that Ofcom’s decision document identifies the Agenda for Growth Agreement as a barrier to improving efficiency.

Ofcom has specifically highlighted the commitment to a predominantly full time workforce, the preservation of existing terms and conditions, the agreement on no outsourcing and the overriding objective to manage change without compulsory redundancy, as restrictions on flexibility and efficiency. In doing so it is echoing the arguments put forward by Whistl and we believe it has stepped well outside of its remit and is opening the door to a race-to-the-bottom in the postal industry – something CWU will not accept.







The union’s campaign now needs to expose Ofcom’s agenda, particularly with politicians in the run up to the general election. Around thirty MPs came to the union’s briefing after the BIS Select Committee hearing on 26th November and pledged their support to our campaign – they now need to deliver on this.

As part of our efforts to up the ante in the New Year, we are also preparing the ground for a legal challenge by calling for a judicial review into the regulator’s role and we want Royal Mail to support this course of action.

We will be sending a pamphlet covering competition and other key challenges to members’ home addresses soon and we are working on developing a broader approach to our campaign.

Finally, we have attached to this LTB a copy of a CWU press release issued earlier today.

Any enquiries on the contents of this LTB should be addressed to the DGS (P).


Yours sincerely






Dave Ward Billy Hayes
Deputy General Secretary (P) General Secretary




















2nd December 2014

For immediate release
CWU calls for judicial review of Ofcom
The Communication Workers Union (CWU) today (Tuesday) called for a judicial review of Ofcom for failing to fulfil its primary statutory duty to protect the universal service obligation.
Ofcom has been attacked for being “part of the problem, not the solution” for refusing to undertake a full review of the postal sector, instead focusing only on Royal Mail’s efficiency.
CWU said the postal regulator was wrong to focus purely on efficiency instead of the effects of unfair competition on Royal Mail.

Dave Ward, CWU deputy general secretary, said: “The time is now right to begin the process of taking Ofcom to a judicial review for its complete failure to tackle the threat to the sustainability of the universal service obligation head on. We expect Royal Mail to support our call to defend its postal workers.

“What Ofcom is really saying is that postal workers pay and conditions need to be cut in the name of efficiency. In criticising Royal Mail’s efficiency, Ofcom is preparing the ground for postal workers terms and conditions and pay to be dragged down to the level of its competitors.

“At last week’s BIS select committee, both trade unions and the postal companies giving evidence all agreed decent terms and conditions and pay were essential for good performance. Ofcom seems to be the only party who want to oversee a race to the bottom on postal pay and service quality, something CWU will never accept.

“Ofcom is part of the problem, not the solution. It’s astonishing that Ofcom refuses to accept that competitors’ ability to cherry pick lucrative urban delivery routes is not damaging the sustainability of the USO. The government needs to take a closer look at who is regulating the regulator and why it is flatly refusing to do its job in protecting the universal postal service.” 
-ends-

[hans solo]

the unions campaign should be to address who started all the f***ing deregulation of mail in the first place
i give you THE LABOUR GOVERNMENT and gordon brown