Royal Mail review of operations in Kent

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Written submission for Thanet District Council scrutiny committee meeting: September 14 2010

Royal Mail review of operations in Kent

Background

Royal Mail began a review of its operations in Kent in June 2010.

There are two key reasons for undertaking the review. As part of a business-wide investment and modernisation programme, in which Royal Mail is spending more than £2 billion on the introduction of new technology and equipment and upgraded operational
facilities, Royal Mail needs to make sure that it has world class facilities which provide the most efficient and effective network
for transporting the post.

At the same time the business needs to respond to the huge growth in electronic communications and the resulting decline in overall mail volumes which in the UK means that there are now 13 million fewer letters posted every day compared to five years ago. Within this shrinking postal market Royal Mail is also losing share to rival operators which now carry more than one in three letters and more than half of all business mail. While these letters are still delivered by Royal Mail’s postmen and women, much of the collection and regional processing activity undertaken by the company’s large processing sites is now done by competitors and the amount done by Royal Mail has dramatically reduced.

Change is absolutely essential to ensure that Royal Mail operates efficiently and provides value for money in a smaller and radically changing market.

This review is part of a major transformational programme supported by both Royal Mail and the Communication Workers Union.
Similar changes have already been made in some other parts of the UK. For example, Royal Mail is investing in new mail centres in the Thames Valley, Midlands and North West of England. Three quarters of our £2 billion investment plan has now been spent,
including £500 million invested in the past 12 months in the introduction of new technology and new equipment. This means
that more than 80% of the mail is now sorted automatically to the level of the individual postman or woman’s walk and the national rollout of “walk sequencing machines”, which sort the mail to the exact pattern of addresses followed by the delivery postman or woman, continues at pace.

Making the operational changes which will result from this review is critical to supporting and securing the six-days-a-week, oneprice- goes-anywhere universal postal service.

Current operation in Kent

There are currently four mail centres in Kent – Canterbury, Dartford, Maidstone and Tonbridge. All are more than 25 years old
and are not large enough to house some of the latest sorting technology.

There are currently 62 mail centres in the UK, covering large geographical areas, where mail is sorted by machines following
collection from pillar boxes and business premises, before being transported to the areas in which it will be delivered.
Delivery offices, which are situated reasonably close to the communities they serve, are used for the final sorting of the
mail by postmen and women before it is taken out on their delivery rounds. There are some 1200 delivery offices across
the country and 46 serving Kent.

The review process

This review is being undertaken on the basis of the national agreement reached earlier this year between Royal Mail and the
Communication Workers Union, which has now been endorsed by postmen and women in a national ballot. Royal Mail is consulting
with its trade unions as proposals are developed and evaluated. Once there is a final preferred option there will be further
local consultation with the unions before a final decision is made. No final decision is expected regarding the mail centres
until towards the end of the year.

The initial proposal

Currently Royal Mail is consulting with the union on an initial proposal. This proposal is to build a new, highly automated mail
centre for Kent which will handle all mail currently processed in Canterbury, Maidstone, Dartford and Tonbridge mail centres. A
preferred site has been identified and, subject to planning permission and the consultation with unions, the new mail centre
could start operating from Spring 2012. Migration of work from the existing four mail centres to the new site would take place
over a phased period. The proposed new site is in Rochester, on land adjacent to Norman Close, Rochester ME2 2JU. Royal Mail is
now working with the land owner and a planning application has been submitted to Medway Council to assess the viability of the
site for potential use as a mail centre. This is the preferred location due to its easy access to transport links (motorway and
train stations) for operations and the majority of Royal Mail employees in Kent. The proposed location for the new mail centre
is a brownfield site and sustainability will be embedded into the building’s design, with 20 per cent of energy requirements from
onsite renewable sources and a 15 per cent overall reduction in CO2 compared with a typical ten-year-old mail centre.
In addition, the proposal reduces vehicle mileage by around 600,000 miles a year (by despatching and receiving mail centre
instead of four). There will be an overall carbon dioxide reduction of 35.5 per cent.

Part of the proposal is the sale of the freehold Maidstone site, with a new delivery office to be built on an alternative site in
the area. Royal Mail is exploring options for the three other mail centre sites at Dartford, Canterbury and Tonbridge, as these
could potentially be used for some of its delivery operation. They are large enough sites to house some of the latest
automation for the delivery operation – “walk sequencing” machines which significantly reduce the amount of hand sorting
that needs to be undertaken before deliveries are made. In looking at how Royal Mail might operate some deliveries from
these sites efficiently, the business is very mindful of the needs of its customers who wish to collect mail.

No decision will be made about any changes to the delivery operation until next year, with implementation not taking place
until at least 2012.

Effect on jobs and employment

Royal Mail anticipates that, under the current proposal, around 400 fewer jobs will be required from a total of 3,710 employees.
By asking people to demonstrate a reasonable flexibility the company expects to be able to find roles for everyone who wants
to continue to work for Royal Mail.

Next steps

Royal Mail will write to the council when it has developed a preferred option.

[POSTMAN]

Most of that tbf is RM bullshit.