End to daily rounds debated as Royal Mail drops into red

Post by **TrueBlueTerrier** » 09 May 2008, 13:57

http://news.scotsman.com/scotland/End-t ... 4066903.jp

Published Date: 09 May 2008
By ALASTAIR DALTON TRANSPORT CORRESPONDENT
SCRAPPING daily deliveries and introducing communal mailboxes may have to be considered to protect the one-price-everywhere postal system after Royal Mail went into the red for the first time, the industry's watchdog group warned last night.

Postwatch Scotland said the UK's unique six-day postal delivery service might have to be reduced to cut costs, with residents no longer having mail brought direct to their doors.

The suggestion was made as Royal Mail yesterday announced that the "universal service", in which letters are delivered anywhere in the UK for the same price, made its first loss last year â€“ of Â£100 million.

This has been blamed on people sending fewer letters as they increasingly use e-mail to communicate, and pay bills online. Businesses are also switching non-urgent mail from first to second class to save money.

However, Royal Mail's parcel volumes are increasing thanks to online shopping.

The firm has also suffered from competition in the lucrative business mail market, although no rivals have yet emerged to challenge its monopoly over domestic post.

An independent review ordered by the government reported this week that opening the postal market to competition has seen no significant benefit for consumers and smaller businesses. It also found there was a "substantial threat" to the financial stability of the Royal Mail and the universal service, which has run since 1840.

The review panel will make recommendations to ministers later in the year.

Postwatch Scotland said protecting the universal service was particularly vital in Scotland because of its large number of rural communities.

Tricia Dow, the watchdog's director, said: "The service is vitally important to everyone, and we are confident in the government's commitment to it.

"However, to ensure the fundamental one-price-everywhere element stays, other aspects may need to be changed and should be open to debate.

"The rest of Europe has deliveries on only five days a week, where people also collect their post from mailboxes, such as at the bottom of tenement stairs."

Billy Hayes, the general secretary of the Communication Workers Union, said: "Royal Mail's financial results clearly show how unfair competition is undermining the ability to provide a universal postal service.

"The status quo is not sustainable and unless the current arrangements in the postal market are changed for the better the public will lose a valuable and irreplaceable postal service."

Adam Crozier, Royal Mail's chief executive, said: "The universal service is a huge asset for Royal Mail and for the nation as a whole.

"But it is now in the red for the first time â€¦ so it is vital that we have the opportunity for a real debate about how the service should be financed and sustained."

A spokeswoman for the Royal Mail said the company "absolutely" wanted to continue the universal service.

She said: "It plays an essential role in social cohesion, but we need to know how this service can be paid for since we make no money from it."

Royal Mail's results for the year to March also showed its letters business lost Â£3 million â€“ the first loss since 2002. It handled three million fewer letters a day than a year ago.

The firm's profits fell by nearly one-third to Â£162 million, the lowest figure for five years, although it said these were ahead of expectations. However, revenue increased by 2.3 per cent to Â£9.4 billion, mainly because of the parcels boost.

A YEAR OF TROUBLES

THE first-ever losses for its universal postal service ended a woeful year for the Royal Mail, which saw the firm hit by severe industrial action, with official and wildcat strikes bringing deliveries to a halt.

Workers protested over pay, jobs and pensions, with union demands including reform of the company's pension scheme, a pay rise this year of 2.5 per cent and changes to working practices.

The disruption cut the performance of postal deliveries to their worst level in five years, with nearly one in five first-class items not being delivered the day after being posted.

Edinburgh, Falkirk and Dundee were among the 20 worst-performing postal areas in Britain.

Alan Alexander, the chairman of Postwatch Scotland, said: "Royal Mail let customers down and has driven many into using alternative means of communicating. It is doubtful that those customers who moved away from mail will return.

"Even after the strike was over the company failed to meet customer expectations at Christmas. This is the busiest posting time for households, and with more and more deliveries from internet shopping, an opportunity to rebuild a tarnished brand was squandered."

dogfood · Post by **dogfood** » 09 May 2008, 17:45

And the responsibility of all this s**t lies with :lfo and :cfo

Phantom · Post by **Phantom** » 09 May 2008, 17:54

Its good that this has all been brought in to public spot light, i wouldn't panic lads and lasses, we (the postal workers) all knew that this would happen, it'll go full circle and then all come back to RM, the other private companies will f**k off eventually when the bulk mail has dried up which is whats happening at the moment.

And by saying "dried up" i don't mean decreasing i mean "carved up" between everyone! When the cake has gone, its gone!

shades · Post by **shades** » 09 May 2008, 18:33

with regard to r.m loosing money and under performing offices the infrastructure of r.m has not changed any, since last year when we we
re making a profit.
The only thing that has is that the management is getting worse as long as r.m is prepared to let local managers recruit who they want in any office we will keep on getting numpties on the floor.
We have two in our place they were the laziest b****ds you could meet
could nt do a walk without cutting off now they are trying to tell you what to do. one of them had the dirtiest van in brittain now he does vehicle checks, bring back the days of men coming up through the ranks and knew the job inside out then we might get r.m back on track

Punk · Post by **Punk** » 09 May 2008, 19:01

We'll be Monday to Friday within 2 years.

Sandyman · Post by **Sandyman** » 09 May 2008, 19:37

Punk wrote:We'll be Monday to Friday within 2 years.

Fingers crossed!!

Post by **Thorby Bislam** » 09 May 2008, 20:13

The firm's profits fell by nearly one-third to Â£162 million, the lowest figure for five years, although it said these were ahead of expectations. However, revenue increased by 2.3 per cent to Â£9.4 billion, mainly because of the parcels boost.

How can profits fall, when at the same time revenue increase ?

DGP1 · Post by **DGP1** » 09 May 2008, 20:18

Thorby Bislam wrote:
The firm's profits fell by nearly one-third to Â£162 million, the lowest figure for five years, although it said these were ahead of expectations. However, revenue increased by 2.3 per cent to Â£9.4 billion, mainly because of the parcels boost.
How can profits fall, when at the same time revenue increase ?

Mismanagement

snoopy777 · Post by **snoopy777** » 09 May 2008, 20:19

as the business keeps giving us money and we give f**k all back :-)

DGP1 · Post by **DGP1** » 09 May 2008, 20:50

disgruntledpostie1 wrote:
Thorby Bislam wrote:
The firm's profits fell by nearly one-third to Â£162 million, the lowest figure for five years, although it said these were ahead of expectations. However, revenue increased by 2.3 per cent to Â£9.4 billion, mainly because of the parcels boost.
How can profits fall, when at the same time revenue increase ?
Mismanagement

Or could it possibly be those magic financial figures which say whatever those in charge want them to say

madelin4 · Post by **madelin4** » 09 May 2008, 21:09

Punk wrote:We'll be Monday to Friday within 2 years.

Yea, m-f be excellent! only downside is all the floaters may be out of a job i think no matter what , job loses will occur.

cj_1985 · Post by **cj_1985** » 09 May 2008, 21:36

i can think of a few ways that we/RMG waste money,...

Maybe if a new system was introduced that removed the need to leave P739s as they cost to manufacture
How many of us drop rubber bands on the road rather than return them for use again...

also i think that having a postie take packages out that cant fit through a letterbox is a waste of time and there fore money... if a packet cant fit through a letterbox they shouldnt be sent out as its extra weight, and wasted time.. have customers collect them. as they do anyway when they arnt home in the first place to collect the items

johnnyp · Post by **johnnyp** » 10 May 2008, 12:06

madelin4 wrote:
Punk wrote:We'll be Monday to Friday within 2 years.
Yea, m-f be excellent! only downside is all the floaters may be out of a job i think no matter what , job loses will occur.

Not mabey madelin4 they will be

A Mon - Friday delivery service would mean NO rest day covers saving Royal Mail a fortune.

DGP1 · Post by **DGP1** » 10 May 2008, 13:20

johnnypick wrote:
madelin4 wrote:
Punk wrote:We'll be Monday to Friday within 2 years.
Yea, m-f be excellent! only downside is all the floaters may be out of a job i think no matter what , job loses will occur.
Not mabey madelin4 they will be A Mon - Friday delivery service would mean NO rest day covers saving Royal Mail a fortune.

We don't have enough people in my DO to cover the floating days off

If it did go to 5 day week then it would mean no reduction in my office.

pickaname · Post by **pickaname** » 10 May 2008, 13:26

cj_1985 wrote: also i think that having a postie take packages out that cant fit through a letterbox is a waste of time and there fore money... if a packet cant fit through a letterbox they shouldnt be sent out as its extra weight, and wasted time.. have customers collect them. as they do anyway when they arnt home in the first place to collect the items

How big is a letterbox?

ROYALMAILCHAT

End to daily rounds debated as Royal Mail drops into red

End to daily rounds debated as Royal Mail drops into red

end of daily delivers