TNT strategy and the threat to the USO

[Martin Walsh]

TNT end to end delivery service by 2017 will cover 42.3% of the total UK addresses but this will cover just 8.5% of total UK area.

By the end of 2014 Glasgow , Edinburgh , Liverpool , Manchester , Birmingham and The whole of London and parts of Essex and Surrey and Kent by the end of 2014 they will cover 14.6% of addresses.

By the end of 2015 they will also be Sheffield , Preston , parts of Cheshire, Oxford , Gloucester , Reading , The Southend area , Portsmouth Area. It will cover 24.4% of the UK addresses.

By the end of 2016 it will cover Leeds , Stoke and most of the midlands ,and North West , Southampton , most of Kent , Gatwick and most of surrey. by the end of 2016 TNT will deliver to 33.8% of addresses in the UK.

By the end of 2017 they will cover 42.3 % addresses in just 8.5% of the UK area.

If the current rate of traffic loss to TNT in the areas they currently cover continues then the USO will not survive.

This is why we have to make off comm act.

[lollollol]

Surely the only way OFCOM will act is by scrapping or amending the USO through a change in the law?

This job is only going one way...

[PHARRY]

Surely the only way OFCOM will act is by scrapping or amending the USO through a change in the law?

This job is only going one way...

A 5 Day week would be nice

[lollollol]

Five day week equates to 20% job losses I believe...

[Hitcher]

Surely the only way OFCOM will act is by scrapping or amending the USO through a change in the law?

This job is only going one way...

A 5 Day week would be nice

Yeah but you'll get Mon, Tues, or both off and work weekends.

[aiden01]

Surely the only way OFCOM will act is by scrapping or amending the USO through a change in the law?

This job is only going one way...

A 5 Day week would be nice

Yeah but you'll get Mon, Tues, or both off and work weekends.

and you will still have a job

[Hitcher]

Maybe not as there will definitely be job cuts.

[Darren Bent]

And there will be new jobs at TNT

[terry2972]

On £7 per hour with no rights

[SpacePhoenix]

Either way I think that Sunday deliveries by Royal Mail will happen within the next year, saw that DPD have started Sunday delivery now

[Martin Walsh]

Royal Mail will never move to a 5 day week and anyone who thinks that it would be Saturday which would go if they did are not in tune with the parcels market and in particular Amazon.

If Royal Mail got rid of Saturdays they would lose Amazon and most of the other Parcels Market as they want Saturdays. In fact last week they came to Royal Mail and said that they wanted them to open the Royal Mail network on Sunday for tracked 24 and 48 for Monday and whilst this is only around 26 000 items it shows how powerful the likes of Amazon are to Royal Mail.

[Brain Fury]

At the Ops Managers Conference in March Moya said that they had looked at Sunday delivery and there was no obvious way that it could be financially viable so there is currently no prospect of it being introduced.

It's a strange world where employees of one company are looking forward to their main competitor taking market share so that they have less work to do.

[fishtank]

Does anyone at HQ have a clear strategy for making OFCOM act or indeed a reasonable list of possible actions they could take to secure the USO?

They can't stop TNT accessing the delivery market and they can't put constraints on TNT that would leave them at a competitive disadvantage with regards to delivering a comprehensive USO style operation so the only thing that really is left is forcing them to pay into a "USO pot" but even that would be driven by what was deemed affordable by TNT not what it costs to run the USO.

I'm sure TNT would be smart enough to show that their E2E business was running with little or no profit margin so it's unlikely any of these sanctions would help us much and if they are paying into a pot to maintain the USO Royal Mail can say bye bye to its VAT exemption status so it's lose/lose on that front.

[Brain Fury]

Does anyone at HQ have a clear strategy for making OFCOM act or indeed a reasonable list of possible actions they could take to secure the USO?

They can't stop TNT accessing the delivery market and they can't put constraints on TNT that would leave them at a competitive disadvantage with regards to delivering a comprehensive USO style operation so the only thing that really is left is forcing them to pay into a "USO pot" but even that would be driven by what was deemed affordable by TNT not what it costs to run the USO.

I'm sure TNT would be smart enough to show that their E2E business was running with little or no profit margin so it's unlikely any of these sanctions would help us much and if they are paying into a pot to maintain the USO Royal Mail can say bye bye to its VAT exemption status so it's lose/lose on that front.

My belief is that RM thought that Ofcom were going to be more supportive after privatisation than they actually are. There seems to be an element of panic over both direct delivery and Amazon's venture into delivery and rightly so. I don't think RM can force anything with Ofcom but the Courier listed actions on a broad front to try to highlight the issues and to engage people that might bring pressure to bear on Ofcom. Of course, there were plenty of posts here celebrating the fact that they had not read any of this and had binned Courier as usual (not you of course Fish) but that's how worried they were about the situation

[cweg]

It's a strange world where employees of one company are looking forward to their main competitor taking market share so that they have less work to do.

Do a lot of posties really hold this view? I see it as a threat to my job more than anything else. If there's less work for us then jobs will undoubtedly start to go.

Sometimes I finish early and sometimes I finish late, but at least I have a job!