Ofcon

[Burnleyfc]

Hiya guys quick question been hearing about royal mail trying to get ofcom to stop TNT for months and months have ofcom actually stated TNT are in any fault and when they actually doing anything about it. ??

[Brain Fury]

Hiya guys quick question been hearing about royal mail trying to get ofcom to stop TNT for months and months have ofcom actually stated TNT are in any fault and when they actually doing anything about it. ??

Royal Mail have been asking for Ofcom to bring forward their review (currently not due until the end of 2015) to see if and when expansion TNT's plans will have any impact on the viability of the USO for which RM is currently responsible. So far Ofcom has refused.

TNT haven't done anything wrong, indeed it could be argued that they they are doing exactly what Ofcom wanted all along so there is no chance of TNT being stopped.

[wabbithunta]

Not hard to do really as this happened a while ago and I just did a little search online (by putting in "OffCom and TNT" as the search) and then found these links online
One from RM and the other from TNT
You can bet that RM will end up getting shafted over this I bet!

http://uk.reuters.com/article/2014/06/2 ... WW20140620" onclick="window.open(this.href);return false;

Britain's Royal Mail warns regulator of threat from competition

(Reuters) - Britain's Royal Mail (RMG.L) has submitted a report to regulator Ofcom over the threat to the country's postal service it said was posed by competitor TNT Post.

Royal Mail, formerly state-owned before it was privatised last year, is required by law to deliver letters six days a week to the whole of the country under its so-called universal service obligation.

However it warns its financial ability to sustain this service could be threatened if rivals are able to "cherry-pick" where to provide competing services - targeting only the most profitable parts of the market and ignoring the rest.

TNT Post has launched in some areas of London, Manchester and Liverpool.

Royal Mail said a lack of intervention from Ofcom would undermine its ability to reach a 5-10 percent operating profit margin for its business for the future.

The firm, which estimated TNT Post's plans would reduce its revenue by over 200 million in 2017-18, said it had asked the regulator for an immediate review to determine the regulatory changes needed to safeguard its service.

Ofcom, which is expected to conduct a review of the impact of competition on the universal service by the end of 2015, said it would consider the report submitted by Royal Mail carefully.

"Our current evidence clearly shows that the service is not currently under threat. We would assess any emerging threat to the service quickly, in the interests of postal users," a spokeswoman said.

TNT Post said there was no evidence that postal delivery competition posed a threat to the universal service obligation.

"Competition is the best news in years for the postal sector - we are creating jobs for thousands of people," it said. "TNT Post delivers less than 1 percent of the mail in the UK," it added.

And this one too

http://stakeholders.ofcom.org.uk/enforc ... /cw_01122/" onclick="window.open(this.href);return false;

Complaint from TNT Post UK Limited (“TNT”) in relation to the prices, terms and conditions on which Royal Mail Group Limited (“Royal Mail”) is offering to provide access to certain letter delivery services

CW/01122/01/14
Complainant: TNT Post UK Limited (“TNT”)
Complaint against: Royal Mail Group Limited (“Royal Mail”)
Case opened: 21 February 2014
Issue: certain prices, terms and conditions offered by Royal Mail for access to certain letter delivery services (known as “D + 2 access”).
Relevant instrument: Chapter II of the Competition Act 1998 (‘the Act’) and Article 102 of the Treaty on the Functioning of the European Union (‘TFEU’) (abuse of a dominant position).
Update note – 3 June 2014
We are continuing with our investigation of TNT’s complaint, including gathering and analysing information using our powers under the Competition Act 1998. We expect this phase of work to continue during summer 2014, and to inform consideration of whether and how to proceed further with the investigation ahead of reaching a provisional decision in autumn/winter 2014.
We would aim to provide an updated indicative timetable when appropriate.
End of update note
Update note – 9 April 2014
As noted on 21 February 2014, following a complaint from TNT, Ofcom has decided to open an investigation in relation to certain prices, terms and conditions offered by Royal Mail for access to certain letter delivery services (known as “D + 2 access”). This follows announcements from Royal Mail in November 2013 and January 2014 of changes to these prices, terms and conditions
As set out in section 25 of the Act, Ofcom may conduct an investigation where there are reasonable grounds for suspecting that the Chapter II prohibition and/or the prohibition in Article 102 TFEU has been infringed. In addition to the Chapter II prohibition in the Act, Ofcom has the power to apply Article 102 TFEU in full.
Ofcom has decided to investigate the matters raised by TNT’s complaint under section 25 of the Act and will consider whether Royal Mail has abused a dominant position under UK and/or EU competition law.
In the initial phase of the investigation, we expect to gather further information using our powers under the Competition Act 1998. Our initial analysis of this information will inform consideration of whether and how to proceed further with the investigation.
End of update note
Following a complaint from TNT, Ofcom has decided to open an investigation in relation to certain prices, terms and conditions offered by Royal Mail for access to certain letter delivery services (known as “D + 2 access”). This follows announcements from Royal Mail in November 2013 and January 2014 of changes to these prices, terms and conditions.

Ofcom will provide a further update in due course.
Case Leader: Ian Strawhorne (e-mail: ian.strawhorne@ofcom.org.uk)
Case Reference: CW/01122/01/14

[daveallum]

I for one would not wish to see any of my ex colleagues lose their job over this but I also agree that TNT are not doing anything wrong.They are delivering their own mail and if their customers (ie Banks,Building Societies etc etc) are happy for the mail to be delivered three times a week than I don't think Ofcom can or will do anything about it.

[ebbzie]

RM needs to be allowed to say fair enough then , TNT must deliver ALL their mail as we do and have to abide by the same strict guidelines RM have to, then we will have a truly level playing field . Not the sham we have now where RM have to deliver TNTS mail at a loss to rural areas

[Martin Walsh]

The blame lies with the Government and indeed Ofcom for allowing a competitor to set up an end to end service where they only want to deliver to just 8% of the UK but to 42% of houses.

There is no way that the USO will survive if TNT cherry picks what they deliver , when they deliver and where they deliver , without any quality controls and paying less then the living wage

The fact is 15% of the UK population live within 1% of the UK landmass compared to 15% of the population live in 65% of the UK landmass in rural and more expensive areas to deliver and serve.

It does not take a genius to understand that the USO only survives due to the fact that Royal Mail make a profit delivering in the cities and high density areas and this allows them to cross subsidy and allow them to fund the USO when a letter from London to Highlands cost over £6 and we do it for the universal price.

The reality is that both Amazon who has set up in the same areas as TNT are going to put the USO at risk. Ofcom do not understand the USO and keep saying to Royal Mail you have to become more efficient but the reality is that whilst that may be true , TNT will still remove the work from the areas which fund the USO.

Not since the right wing Roland Hill set up the penny post have we come so close to a tipping point. The concern is most members really do not understand the threat as most of the UK do not see any competition. Sadly whilst this will effect everyone , the rurals and towns where it is more expensive to deliver and serve will be the areas which see the biggest amount of job losses if the USO ends.

[dvbuk55]

Well it must be a little more complicated than that. Not least of all that despite massive investment, higher productivity, major job losses, a management/union collaboration we are still failing to produce the goods - so who is at fault - apart from the regulator and government there must be culpability within the organisation. Could it be that some areas failed to embrace modernisation revisions for years, that some areas are vastly over manned and show no sign of slimming down manpower and or hours - perhaps those involved in those practices should shoulder some of the blame.

[Darren Bent]

I think we need action against TNT/Ofcom if they won't do anything to help us.

Can Royal Mail ignore TNT and go ahead whatever they need to do as they like to force things

[ebbzie]

Well it must be a little more complicated than that. Not least of all that despite massive investment, higher productivity, major job losses, a management/union collaboration we are still failing to produce the goods - so who is at fault - apart from the regulator and government there must be culpability within the organisation. Could it be that some areas failed to embrace modernisation revisions for years, that some areas are vastly over manned and show no sign of slimming down manpower and or hours - perhaps those involved in those practices should shoulder some of the blame.

Oh dear another dig at LOndon post

[villan]

How about RM simply saying:

Right, we're scrapping the USO with immediate effect. Try to fine us and we'll see you in court where TNT's unfair competition and the insanity of forcing a private business to provide a loss-making service will be exposed to all.

[dvbuk55]

Well it must be a little more complicated than that. Not least of all that despite massive investment, higher productivity, major job losses, a management/union collaboration we are still failing to produce the goods - so who is at fault - apart from the regulator and government there must be culpability within the organisation. Could it be that some areas failed to embrace modernisation revisions for years, that some areas are vastly over manned and show no sign of slimming down manpower and or hours - perhaps those involved in those practices should shoulder some of the blame.

Oh dear another dig at LOndon post

Well if the cap fits, wear it. By the by have all the revisions been done yet and the BSI reached 60 yet

[Martin Walsh]

Dvbuk your comment is unbelievable and is not worthy of an answer. We are talking about a far bigger issue. It does not matter what productivity you have if TNT is in your area and Amazon have taken all their parcels and you suddenly are losing 20% of your work and you have the same amount of hours your productivity drops.

Royal Mail cannot just rip up the USO as under the Postal Service act it was granted a licence on the basis it provided the USO. If the USO was to go London and the main cities will still have a daily delivery but with less jobs but the rurals and towns where it is more costly will probably have one or two deliveries per week but customers would have to pay more for delivery to those areas.

Modernisation really got nothing to do with unfair competition, it does matter whatsoever how productive or efficient you are if Amazon suddenly delivers all your parcels themselves and TNT start not putting the DSA into your delivery office and then chooses to deliver themselves then your EP , productivity drops unless you take the hours out.

Being anti London , or anti Liverpool or anti Manchester or anti Birmingham , the reality is that by allowing TNT to continue on an unfair basis will mean we all lose regardless of where you work.

[nataddick]

Royal Mail have enlisted the expertise of Richard Hooper to advise them - to me the guy has the credibility to present the case on our behalf to Ofcom and the Government. If the guy that called for Privatisation doesn't have the ear of Government Ministers then I don't know who does !

http://www.myroyalmail.com/news/2014/06 ... royal-mail" onclick="window.open(this.href);return false;

[chrisj]

London bashing aside, I do not understand the comment about members not understanding the problem; what the hell we can do about it??? *

As a postie, I can only do my job and as it stands I am working as hard as I could possibly do. I am lucky to be flexible and adaptable in the sense that I can do not mind my hours varying as long as I have an average maximum contractual hours and I am willing to do any duty as I am relatively new and have been a reserve for ever...

However, it is worth saying from dvbuk that the offices that have refused to modernise and some of our members that cannot countenance a bit more flexibility do not help the situation. They give succor to OFCOM re: improved efficiency... And as long as some so-called powerful branches are not pulling their weight or not sharing enough of the burden of part-time work and close optimisation of manpower and resources; some of us should be asking the question why?

Being lectured and partially patronised smacks of hypocrisy...

* funny enough, the only real way to compete is to take pay cuts, be far more flexible (banking hours, seasonal variations in hours, no more fixed job holder status, reduced price, some VR, closures/mergers of mail centres, closures/mergers of some DO, mergers of collection point for parcels and letter etc, slashing of management numbers and and root and branch change in management structures with increased efficiency from many managers, better use of technology including PDA for customers and workers, more dedicated parcel delivery (old school but a sunday service and specialist tracked and oversized packet delivery in some areas), later opening times for collection of parcel and more convenient places and evening delivery and others...

So what is the CWU proposing? They seemed to be reacting than than pro-active these days. Its not easy but they have to make tough decision and explain themselves...

[Jack Rouse]

If it's a competitive market, as we keep being told, then RM should charge all these DSA companies a realistic price, with a lump it or like it attitude, how can it be seen as fair competition, when one company in the market is being forced to deliver a competitors mail at a loss.

RM should tell these companies that the cost of delivering their mail within the USO is going to cost them 75p per item. Then see if they want to deliver one letter on a Tuesday to a farm at the end of a one mile track.

In the mean time RM sales force go through the motions of undercutting TNT and the like, by contacting all their customers and offering to deliver the mail cheaper than TNT.

That is a competitive market, not what we have now.