Royal Mail to cut 1,600 jobs

[TrueBlueTerrier]

http://www.plymouthherald.co.uk/Royal-M ... story.html" onclick="window.open(this.href);return false;

Royal Mail is planning to axe 1,600 jobs as part of a cost-cutting drive, the company said today.

It said it was due to begin consultations with the Communication Workers Union and Unite over the move which will largely involve managerial positions.

The company, which controversially floated on the Stock Exchange last year, said that 300 new or enhanced positions would also be created, leaving a net reduction of 1,300 roles.

Royal Mail said the move would not affect postmen and women or the services provided to customers.

It said the proposed job losses were part of a cost-cutting programme to deliver annual savings of around £50 million a year, including £25 million in 2014/15.

The programme will result in an additional £100 million costs for the current financial year, taking the total to £230 million.

Royal Mail said it was committed to handling the consultation "carefully and sensitively". Its European parcel delivery company, GLS, is not affected.

It said that, since 2003, 50,000 employees had left the group and it had a strong record of "achieving change through natural turnover, redeployment and voluntary redundancy wherever possible".

Chief executive Moya Greene said: "We are continuously improving our efficiency, whilst maintaining our high quality of service.

"We need to do so in order to effectively compete in the letters and parcels markets. This is the best way to ensure the continued delivery of the universal service and the good-quality jobs we provide for our people."

The Unite union's Royal Mail officer Brian Scott raised the spectre of strike action in the event of compulsory redundancies

He said: "First the Government sells off Royal Mail on the cheap and now the newly privatised service is ruthlessly sacrificing jobs.

"We do not believe that it's a coincidence that this announcement has been made just before the company prepares to announce its first full set of accounts since privatisation.

"It's more proof that Royal Mail's primary reason for existing is now about making profits rather than serving the nation.

"For all that Royal Mail managers have been through they do not deserve to be treated in this way.

"Unite is demanding a commitment to no compulsory redundancies on fair terms and an effective method for redeployment within the restructured organisation. If Royal Mail refuse, we will have no alternative than to consider a ballot for industrial action."

The announcement comes just three months after Royal Mail struck an agreement with union leaders on pay, pensions and other issues linked to the privatisation.

Under the deal between the CWU and the company, which averted strikes, more than 130,000 employees would receive a three-year pay rise worth around 9% and legally-binding employment protections.

But there has been controversy over the salary of Ms Greene, amid recent reports that Business Secretary Vince Cable wants to block any rise of more than 3% for the chief executive. The Government still owns a substantial chunk of the company.

Labour has accused the Government of a "botched privatisation" of Royal Mail, saying taxpayers have been short-changed by hundreds of millions of pounds.

The market value of the company soared on privatisation last October, when shares were valued at 330p, though Mr Cable dismissed the steep rise when they began trading as "froth".

However, they have remained well above £5, helping the company enter the FTSE 100 index of top London-listed companies by valuation. Last night they closed at 584p.

Communication Workers Union deputy general secretary Dave Ward said: "Royal Mail's plan to cut 1,600 staff would see major changes to the company and are deeply concerning.

"We understand that the majority of these job losses will mainly be head office managerial staff rather than postal workers but we will fight to protect as many jobs as possible.

"We are yet to see how many employees in CWU-represented grades will be affected."

[TrueBlueTerrier]

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'Frontline' postmen unaffected as newly privatised service starts formal consultation with unions



The Royal Mail, Britain's newly-privatised postal service, is to cut around 1,300 operational and head office jobs to save around £50m a year.

The company, which was sold off last October in Britain's biggest privatisation for decades, has shed almost 50,000 jobs since 2003 to compete in a market in which the Internet has created a shift from letters to parcels.

Royal Mail said it will start a formal consultation on Tuesday with the Unite and CWU unions. It plans to reduce around 1,600 roles but create 300 new ones.

It said the cuts would not affect "front line" postmen.

Moya Greene, the chief executive of Royal Mail, said: "We are continuously improving our efficiency, whilst maintaining our high Quality of Service. We need to do so in order to effectively compete in the letters and parcels markets.

"This is the best way to ensure the continued delivery of the Universal Service and the good quality jobs we provide for our people."

Brian Scott, Unite's representative for Royal Mail, said the scale of the cuts were a "surprise and a shock".

He said: "First the Government sells off Royal Mail on the cheap and now the newly privatised service is ruthlessly sacrificing jobs. We do not believe that it's a coincidence that this announcement has been made just before the company prepares to announce its first full set of accounts since privatisation. It's more proof that Royal Mail's primary reason for existing is now about making profits rather than serving the nation."

Three months ago Royal Mail struck a deal with union leaders on pay, pensions and other issues linked to the privatisation. Under the deal, which averted strikes, more than 130,000 employees would receive a three-year pay rise worth around 9pc and legally-binding employment protections.

Royal Mail's privatisation was controversial, with the government accused of undervaluing the business after the shares were floated at 330p a share in October and jumped nearly 40pc on the first day. The shares were are trading above 570p on Tuesday.

The company will take a charge of £100m and expects to make savings of £25m in 2014-15 as a result of the cuts.

[TrueBlueTerrier]

http://www.bbc.co.uk/news/business-26728116" onclick="window.open(this.href);return false;

Royal Mail is planning to cut 1,600 roles as part of a drive to cut costs, mainly among its head office managerial staff.

The postal delivery service says the net effect will be 1,300 job losses, as it plans to create 300 new or enhanced roles at the same time.

It says the cuts are part of its aim to make cost savings of £50m a year.

Unite, a union which represents 7,000 Royal Mail managers, warned the cuts could spark industrial action.

Royal Mail - which currently employs about 150,000 people in total - said it would start consultations on the job cuts with both Unite and CWU on Tuesday.

It emphasised that the cuts would have "no impact" on frontline employees including postmen and women.

The company said it expected the job cuts to reduce costs by about £25m in 2014-15


Union warning

Royal Mail chief executive Moya Greene said the cuts were necessary for it to "effectively compete in the letters and parcels markets".

The company, which floated on the London Stock Exchange last year, said 50,000 of its employees had left since 2003.

The Unite union described Royal Mail's proposals as "ruthless".

"Royal Mail's primary reason for existing is now about making profits rather than serving the nation," said Brian Scott, Unite officer for Royal Mail.

"Unite is demanding a commitment to no compulsory redundancies on fair terms and an effective method for redeployment within the restructured organisation. If Royal Mail refuse we will have no alternative than to consider a ballot for industrial action."

Royal Mail said making the cuts would cost it about £100m, taking its cumulative "transformation" costs for 2013-14 to £230m.

It had originally expected transformation costs for the period to be £160m.

Despite the costs, it said it still planned to invest about £1.2bn into the business between 2013 and 2015.

[Jynxx]

What gets me is how the management pushed through privatisation as if it was a great amazing thing as the company needed private investment to survive.(countless work time learning sessions) I kept pointing out to management that in the event of us being privatised management would be the first to go. (also pointed it out on here somewhere)
Though I feel sorry for anyone losing their jobs I can't help but feel to say "I told you so"

[Brain Fury]

What gets me is how the management pushed through privatisation as if it was a great amazing thing as the company needed private investment to survive.(countless work time learning sessions) I kept pointing out to management that in the event of us being privatised management would be the first to go. (also pointed it out on here somewhere)
Though I feel sorry for anyone losing their jobs I can't help but feel to say "I told you so"

Do you honestly think that managers had any influence on whether the business was privatised or not? In any case we would have been facing the same cuts even if the business hadn't been privatised.

[Jynxx]

What gets me is how the management pushed through privatisation as if it was a great amazing thing as the company needed private investment to survive.(countless work time learning sessions) I kept pointing out to management that in the event of us being privatised management would be the first to go. (also pointed it out on here somewhere)
Though I feel sorry for anyone losing their jobs I can't help but feel to say "I told you so"

Do you honestly think that managers had any influence on whether the business was privatised or not? In any case we would have been facing the same cuts even if the business hadn't been privatised.

Not at all, just irritated me that they had every opportunity to agree with us instead they just pushed the drivel down our throats about how amazing it would be and how private investment was desperately needed in wtl instead of growing a backbone and saying it was bs like we all pointed out in the first place.

[DB1100]

I wonder if many will seek a transfer to delivery.

[human1]

I wonder if many will seek a transfer to delivery.

Thats mean no cul on delivery mangers ??

[worktotime]

do you think this has something to do with moya and her cronies hitting there targets on savings so they get there 1000s of extra shares ? there is no more savings in delivery as they have nothing left to save on the frontline staff , closed mail centres ,so hit the managers on top wages , bonuses , and do fuckall , I wont be able to sleep worrying about it

[worktotime]

I suppose one good thing is in delivery the share price should increase.

[Brain Fury]

What gets me is how the management pushed through privatisation as if it was a great amazing thing as the company needed private investment to survive.(countless work time learning sessions) I kept pointing out to management that in the event of us being privatised management would be the first to go. (also pointed it out on here somewhere)
Though I feel sorry for anyone losing their jobs I can't help but feel to say "I told you so"

Do you honestly think that managers had any influence on whether the business was privatised or not? In any case we would have been facing the same cuts even if the business hadn't been privatised.

Not at all, just irritated me that they had every opportunity to agree with us instead they just pushed the drivel down our throats about how amazing it would be and how private investment was desperately needed in wtl instead of growing a backbone and saying it was bs like we all pointed out in the first place.

I'm not going into the whole privatisation argument again except to say that today's announcement hasn't proved that.

[Brain Fury]

As I understand it, the job losses are in the support functions. There is no cuts on delivery managers but managers in operational roles will be invited to express a preference for VR only to create opportunities for people currently in non-operational roles to relocate.

It's got nothing to do with "Moya and her cronies" hitting targets. It's got everything to do with cost reduction to demonstrate to Ofcom that RM is improving efficiency. And don't bank on there not being further cuts in delivery down the road especially as the impacts of TNT and other competitors start to bite.

[worktotime]

As I understand it, the job losses are in the support functions. There is no cuts on delivery managers but managers in operational roles will be invited to express a preference for VR only to create opportunities for people currently in non-operational roles to relocate.

It's got nothing to do with "Moya and her cronies" hitting targets. It's got everything to do with cost reduction to demonstrate to Ofcom that RM is improving efficiency. And don't bank on there not being further cuts in delivery down the road especially as the impacts of TNT and other competitors start to bite.

so why does it say 50m savings is that not cost cutting ? and I don't bank anything in this job , I did put in for vr and got turned down and I work in delivery. good I might have a second chance.

[Brain Fury]

As I understand it, the job losses are in the support functions. There is no cuts on delivery managers but managers in operational roles will be invited to express a preference for VR only to create opportunities for people currently in non-operational roles to relocate.

It's got nothing to do with "Moya and her cronies" hitting targets. It's got everything to do with cost reduction to demonstrate to Ofcom that RM is improving efficiency. And don't bank on there not being further cuts in delivery down the road especially as the impacts of TNT and other competitors start to bite.

so why does it say 50m savings is that not cost cutting ? and I don't bank anything in this job , I did put in for vr and got turned down and I work in delivery. good I might have a second chance.

Of course it's cost cutting - that's how you increase efficiency - doing the same work a lower cost.

[Lounge Lizard]

"The first redundancies since the Government part-privatised Royal Mail in October involve 1600 managers, mostly from its Victoria head office"
So what have more than 800 managers that aren't now needed been doing at head office apart from ?
And less than 800 from elsewhere is less than one per delivery office .