Delivering a new blow for small businesses

[TrueBlueTerrier]

http://www.inverness-courier.co.uk/news ... esses.html

By Fay Thomson, Highlands & Islands Regional Organiser, Federation of Small Businesses
Published: 18 September, 2007

THE latest Royal Mail proposal for later delivery and earlier collection of post may be the final straw for small businesses.

Changes to postal services such as the scrapping of second deliveries in 2004, the introduction of Pricing in Proportion (PIP) in August last year and the widespread closure of post offices have brought the service to a sorry shadow of its former self.

Despite rising postage costs, the service is getting steadily worse. For many businesses, the situation has reached crisis point, with the decline in postal services increasingly affecting their ability to trade.

FSB research indicates that 88 per cent of small businesses send mail every working day. The Royal Mail provides a vital service to small firms, particularly to those who cannot access other mail providers.

Delays in mail arriving and items being lost can have a severe effect on cashflow. In some cases it can be terminal to a business – costing jobs.

With the introduction of the Single Delivery Service in 2004, around 50 per cent of businesses reported that their mail arrived later in the day. More significant problems have occurred following the introduction of PIP.

Often, underpaid mail is returned to sorting offices, unbeknown to the sender, and is frequently not collected by the addressee for several days or weeks. Some incidences of underpayment and surcharging are genuine, but the FSB has had several reports of surcharges being applied to mail which has been carefully checked and priced by the sender using pricing equipment issued by the Royal Mail. Many businesses are now overpaying to ensure mail is not surcharged and delayed. Royal Mail has acknowledged that it is receiving complaints in this regard.

Royal Mail's latest plan to introduce a new collection and delivery service, ironically named "Delivery Best Practice", would mean no deliveries before 10.30am. Almost two-thirds of businesses and households would receive their mail in the afternoon.

Collection times for post in rural areas could be as early as 9am while delivery times could be as late as 3pm – so a small business could receive an urgent letter in the middle of the afternoon and have only a couple of working hours to process it and respond before the next collection time.

For small businesses, consistency is an essential component of a postal service. In 2004, businesses were forced to alter their daily work patterns to accommodate the Single Delivery Service. The introduction of PIP brought further disruption to small firms who simply do not have the resources, in terms of both finance and manpower, to deal with constant changes to the postal infrastructure.

Royal Mail claims the proposed changes are necessary in order to reduce costs, but it is currently paying out more than £1m per month in compensation for lost and damaged items. Small businesses should not be made to suffer on account of the inefficiencies of a large organisation whose chief executive earns in excess of £1m per year.

The FSB is strongly objecting to the latest proposal to further downgrade postal services and is urging Postcomm to insist Royal Mail raises its game

[IWW Fellow Worker]

It's a decent article, but let's face it - a couple of parasites on £1.m a year for a one day week aren't going to be bothered about a few thousand small businesses who might rely on decent service to keep their heads above water.

[kinmad4it]

Realy good article that highights all the points we've been making on here about royal fails lack of concern about its customers. Shame something like that doesn't get published in the national press.

[dvbuk55]

It's a decent article, but let's face it - a couple of parasites on £1.m a year for a one day week aren't going to be bothered about a few thousand small businesses who might rely on decent service to keep their heads above water.

You're right. But I do feel a bit embarrassed when with the scales we have I've had to guess the weight of items because the scales aren't calibrated sufficiently.

[dogfood]

The FSB is strongly objecting to the latest proposal to further downgrade postal services and is urging Postcomm to insist Royal Mail raises its game

Well they aren't objecting strongly enough, state their case in the Nationals The Daily Mirror would be a good start.

[barkersboy]

This article describes the frustration of Small Businesses and the workforce of Royal Mail. I am continually amazed at the treatment we give our business customers. Royal Mail continually tell everyone that the reason we remain in business is that business customers pay for the universal service losses. In the quest to meet targets my mangement remove me from business duties to sort postage mail. Sod the business customer, we must clear all first class stamps. I continually argue with managers when they switch me from my Revenue and business duties to sort stamps. Fairly soon I expect maangement will have me in the office for my refusal to do ordinary duties when I am supposed to be looking after small business revenue and irregularities. If anyone up beyond the borders, knows the author of the article ask her to post on this forum and Iwill give her the details to chalenge RM.

[Wild Cat]

This just shows that :cfo and :lfo have a complete disregard for the well being of not only it's workers but it's customers and the future of this country as well.

It is widely accepted that small businesses are responsible for most of the growth in the economy without them our jobs and most other peoples jobs would be at stake.

For goodness sake people for all our sakes we must get rid of these to clowns once and for all and show Brown that we will not bow to his 2.5% agenda.