Ballot on mail delivery ban

[POSTMAN]

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Postal union leaders are threatening to ballot members on boycotting deliveries for Royal Mail’s rivals, in a move that could muddy the waters over privatisation of the state-owned postal operator.

The Communication Workers Union’s annual conference on Tuesday will discuss a timetable for a consultative ballot of its 150,000 Royal Mail members to introduce a ban on the grounds that rivals are competing unfairly by “cherry-picking” profitable bulk mail contracts.


While Royal Mail is responsible for delivering nearly all the letters delivered, it takes a fee for delivering presorted mail to the final address. Postal workers say the contracts are undermining pay and jobs.

Companies such as BT, Thames Water, Sky, Barclays, NPower, O2 and Talk Talk use rival firms, such as TNT Post and UK Mail, to handle all or some of their mail. Post presorted by Royal Mail’s rivals is now close to 50 per cent of all letters, compared with 5 per cent in 2005.

Royal Mail’s management has been braced for an increase in industrial disputes in the run-up to negotiations with the CWU over a two-year pay and conditions deal that is an important element in the privatisation package.

The CWU fears that the loss of business to its rivals will threaten the universal service obligation – the promise that Royal Mail will pick up and deliver six days a week for a uniform price anywhere in the UK.

Ofcom, the regulator, said: “The one-price-goes-anywhere universal service is enshrined in law, and could only be changed by Parliament. Ofcom has made clear that we have no plans to recommend any such change, and the Government has ruled out any change within the current Parliament.”

The Royal Mail said it was fully committed to the delivery of mail entrusted to it under access contracts. It made an £80m profit on the previously lossmaking activity in 2011-12.

[UnhappyGremlin]

It's funny. I've not heard any mention of this £80m profit before......
Keep saying it RM. You might batter it into my head yet, and if not, it certainly wouldn't be for the want of trying.

[SpacePhoenix]

Can't see how any ballot over it could work as if the union attempt it, RM could probably just charge everyone with wilful delay

[DGP1]

How would any ban work? Would it be a MC issue or a delivery one, either way only one function is going to be left fighting while the other has to do nothing.

Stupid idea IMHO

[fishtank]

Personal opinion,it's a bargaining/PR tool to try to put some pressure on Ofcom,nothing more than that.
If there is action this year it will be over pay and pensions and will involve boycotting all mail not just competitors.
It is however very important that the members support this because it isn't much of a bargaining/PR tool without member support and no matter what you think of the CWU's past performance a union without the support of it's members will have nothing to take to the table...and obviously nothing to bring back.
In that case we won't be able to blame HQ...only ourselves.

[Lincox]

They could charge with wilful delay but then they wouldn,t get anything delivered. Can you imagine 150,000 casuals/agency workers trying to cope.

[dounome]

Ive never really understood how we can lose these contracts to rivals yet still deliver it the final mile, surely if we are delivering it then we can undercut them too, or is it too simple?

[barrowc]

Royal Mail are required by Ofcom to give the DSA carriers lower prices than are charged for the equivalent Mailsort 2 services. I think this is the most up to date statement on that subject - http://stakeholders.ofcom.org.uk/binari ... annex9.pdf:

6. Control to prevent price squeeze

USPA 6.1

Unless OFCOM direct otherwise, the universal service provider shall in setting prices be subject to the requirement to take all reasonable steps to ensure that it:

(a) maintains a minimum margin between the retail prices of the Relevant Retail Services and the access charges for the Relevant Access Services during the Relevant Period in accordance with USPA 6.2 to USPA 6.5 below; and

(b) maintains a minimum margin in relation to every individual contract between the retail price of the Relevant Retail Service and the access charge for the Relevant Access Service during the Relevant Period in accordance with USPA 6.2 to USPA 6.5 below.