Some people think that Ofcom will ride to the rescue forcing TNT to deliver to every address making the whole thing uneconomic and TNT will disappear sharpish.
This will not happen.
It won't happen because the economics of setting up a rival USO would be unmanageable for any company and this would be deemed anti-competitive under relevant EU Directives and the only available alternative would be the right to establish a compensation fund where provision of the USO entails a net cost and represents an unfair financial burden on the Universal Service Provider.
Royal Mail staff should be very aware of the arguments the likes of TNT Post will put forward against paying into a compensation fund.
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This is the reality of the situation.As to matters which are to be considered to be within Royal Mail’s control (paragraph 6.28), it should be expressly stated that wages and other employment conditions are within Royal Mail’s control. It gives cause for concern that OFCOM will undertake work to identify a reasonable rate of efficiency improvement. If set too low, this can result in competitors not investing (due to risk of regulatory restraints) and may become a self-fulfilling prophecy.
In principle we do not accept the presumption that Royal Mail’s costs are relatively fixed. The majority of cost is labour and so is, inherently, a variable cost. Royal Mail needs to be exposed to competition both operationally and on employment terms in order to produce the most efficient and flexible cost structure.
The current business model would represent an inappropriate baseline if it does not look forward and assume implementation of other employment models, more akin to those of its competitors. A changed Royal Mail business model could lead to another number staff and could lead to leaner (i.e. cheaper) labour costs and conditions.
Finally, in assessing the effect of delivery competition on the provision of the USO, potential changes to the USO must also be taken into account. If the extent of the USO is set at a level which is wider than it needs to be, from a consumer or EU legislation perspective, there can be no defensible argument that competition should be restrained in order to justify such additional and non-essential obligations.
These obligations would exist, ultimately, because of a political decision and not the assessment of the independent regulator. The guidance should make clear how any permitted reduction in the USO will be taken into account. It should not be limited to changes which are proposed (as stated in paragraph 6.63) as these may countenance a service which goes beyond the minimum needs of users and, thus, place an undue burden on Royal Mail and, thereby, its competitors
TNT want both the USO and our terms and conditions reduced before they would consider making any contribution to the USO,Ofcom,Royal Mail and a Tory government are unlikely to put up much of a fight.
The only people left to fight for both are us and our union.
Strike on the 4th of November or roll over and accept the TNT model,It's that simple.
FFS what is it going to take to stop these thieving money grabbing bastards from dragging everyone down to the lowest level of employment?
