Second warning shot from Royal Mail

[POSTMAN]

https://www.myroyalmail.com/news/nation ... profitable" onclick="window.open(this.href);return false;

Making Access – or DSA – mail profitable

Royal Mail made £80 million from Access – or DSA – mail during the last financial year

This was a real turnaround from the £105 million we lost on DSA mail the previous year.

Access mail was once significantly loss making. It’s profitable now though. It’s an important source of revenue. One in two letters we handle is Access mail. All of our customers’ mail is important to us. It needs to be delivered.

We can’t pick and choose the mail that we deliver. It’s part of our DNA that we deliver.

It’s vital for Royal Mail and for the sustainability of the Universal Service that we continue to provide the high quality delivery service that our customers expect.

We’re making money on Access mail through the necessary price rises we put in. These were really important. They allowed us to make a profit on Access mail for the first time since it was allowed into our network, and to begin to turn the company around.

Ofcom allowed us to raise our prices to protect the provision of the Universal Service.

What’s more, the new regulatory framework that we now have – which came into force at the start of the current financial year, April 2012 and which we lobbied hard for – allows us to price on a more commercial basis from now on.

There’ll be more on Access mail and why it’s so important that we deliver all mail on RMTV in the coming weeks. There will also be more in the March edition of Courier.

(The £80 million made from DSA mail was after modernisation but before other exceptional costs.)

[ebbzie]

What utter crap. i think their missing the point , why oh why should we be doing TNT or Uk mails work for them why they try to set up their own deliveries which will ultimately cost us all our f**king jobs
Then they can employ us on minimum wage part time temporary contracts

[vigilante]

Let them deliver to all rural areas thats fair competition not just cherry pick the cities.
If they want to compete in the postal market set up a delivery network-everwhere--if you can't----tough.
We don't want them using our networks and we should have a bigger slice of the profit anyway.
The regulator and Moya are also fighting for 5 day deliveries.

[UnhappyGremlin]

There’ll be more on Access mail and why it’s so important that we deliver all mail on RMTV in the coming weeks. There will also be more in the March edition of Courier.

Oh great, more propaganda on the way then.

Does anyone else get the impression that RM is really quite worried about the proposed Boycott of DSA/Protect the Post campaign? They do seem to be trying to convince us not to continue with this action. Maybe, if it is ratified, they'll start to listen.

I expect, unless/until the proposed action is cancelled, we can look forward to more useful and reliable information on this subject.

[Red Robbo]

Did we not " boycott" Eddie Shay's photo processing company and letters posted to South Africa and lose both campaigns in court, why do we lead our members up the "garden path" knowing full well it ain't going anywhere ?

[teesdale]

Yes Ive given up on the courier as well after always having a quick flick through since I started with RM. Im afraid I wont be filling in any of the employee survey coming up either for the first time ever. I forgot my royal mail existed. On the subject, if we complete only part of our job each day and boycott the DSA processing and delivery cant RM not pay you for the whole day. Will it not be classed as a day of strike even if you did eight hours processing/delivering of PPI,stamped,mailsort,meter etc. Imagine getting your pay slip after 5 days and a days pay is missing without warning. RM management are this devious and would let the CWU walk into the trap saying take us to court after the event. Even then I think RM would win after a year in the courts. Better the CWU concentrate on the no privatisation campaign to bargain a decent share deal, although hands off administering my shares CWU.

[bennny7]

how on earth do you boycott dsa mail what would we do all day do the union not know how much mail is dsa you are right managers would deduct our pay cost us more than going on strike or are we just playing into managers hands

[UnhappyGremlin]

I think the theory of a DSA boycott is that, if it is given the go ahead, and the CWU give a couple of months notice of a start date, then companies like banks/utilities providers that send statements/bills via TNT/UK Mail etc, wouls seek reassurances from the respective mail providers that there wouldn't be delays in delivering their mail. If they can't provide it, they could cancel their contract (for a breach), and return to RM, as they could guarantee the mail would be delivered as we wouldn't be affected by the boycott. Whether or not it would work is another matter.

It also remains to be seen how RM reacts if the proposed boycott is ratified. (Although threats of Wilful Delay/B&H are certainties in my view).

[britwrit]

No other company can provide a comprehensive end-to-end delivery system for all addresses in the UK. So, if you're Royal Mail and about to go private, what's more attractive to buyers? The spare change we get from DSA... Or a complete monoply over bulk mail?

[Lincox]

The 80 million is spare change. As a percentage of DSA turnover I would imagine that the profit is a very small percentage. Better than a loss, yes, but surely Royal Mail are now in a better position to win those big contracts back and make a better return. If only we had entrepreneurs at the helm instead of slash and burn merchants.

[fishtank]

surely Royal Mail are now in a better position to win those big contracts back and make a better return.

They don't want the contracts back and no longer have the capacity to deal with them.
The letters market is going nowhere,DSA or otherwise.

It's probably to a lesser extent always going to be there but RM are not interested in re-investing in mailcentres and distribution to handle what they see as a a declining business.

Parcels are where Royal Mail want's to go rightly or wrongly.
They are just making a pig's ear of getting there.

[Red Robbo]

It will take a long time to make the change of calling " packets" parcels but Moya has got used to it,she mentions re-investment in the parcels business, and managing the decline in letters, so mail centres are on the way out !

[Lincox]

Fish, I don,t really understand that argument, as we are dealing with them anyway, so we already have the capacity even with the closure of mail centres to date, so why not make more money while the business is still there?

[music4essex]

I could never understand why we never delivered the mail at a loss instead of allowing DSA providers to pick it up and then deliver it,

To me all it has done is seeing the closure of Mail centre's and delivery offices.

Now we also have the scenario that we are to become a parcels business, so why did we seperate the parcels from the delivery offices in the early 90.s to make a new company up withing RMG , which must of cost millions , now all of a sudden we are parcelforce but not in name , are they going to bring it back into the delivery offices.

For a company I never known such bad decisions made and yet the senior managers directors make massive bonus's out of it and yet the workers are shafted in losing there jobs or being bullied out of the job

Essex mum

[fishtank]

Fish, I don,t really understand that argument, as we are dealing with them anyway, so we already have the capacity even with the closure of mail centres to date.

DSA is normally received directly at the intended mailcentre.
This cuts out a great deal of the distribution and related costs for RM.
That's why RDC's have been hit hardest by DSA.

Royal Mail can make as much if not more pure profit from a DSA item now since the pricing structure has changed as they can from their own,it's just not worth the re-investment and people costs to them.
They are ruled by the bean counters and have no social conscience.
DSA is still evil to us because it continues to cost jobs,to the business that's a bonus.