We must demand action now to protect the Universal Postal

[TrueBlueTerrier]

We must demand action now to protect the Universal Postal Service

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The public recently lost most of its ownership of Royal Mail as the Coalition Government frittered away important national assets, amounting to almost £1 billion, in a desperate fire-sale.

If this wasn’t bad enough, now the universal service provided by Royal Mail is also under threat due to the introduction of direct delivery competition. One competitor, TNT, aims to provide delivery to 42% of UK addresses by 2017 – covering just 8.5% of the total UK area. This shows that a “cherry-picking" operation is underway, whereby a competitor harvests the profitable urban areas, like Manchester, Liverpool and London, whilst leaving Royal Mail all the loss-making ones.

And this “cherry-picking” is not only confined to delivery areas. TNT can also determine when it delivers, favouring a lower cost every other day service, while Royal Mail is bound to the Universal Service Obligation of a six day delivery and collection service for mail, and five for parcels. TNT can also even decide the type of mail it delivers, favouring business mail which is issued in regular volumes. Given that the total number of letters has been in steady decline since 2005, and this year alone, we expect volumes to fall by between 4 and 6%, this type of business mail is particularly sought after and so is particularly damaging as it is the most valuable to Royal Mail.

For these reasons, competitors, like TNT, pose a certain risk. The danger is that Royal Mail will no longer be able to fund its services, which completely undermines its role as the universal provider. Despite this, Ofcom, the regulator responsible for the postal industry, has refused to take any action to defend the universal service.

This is because Ofcom believes that the competition is healthy and does not pose a threat. Yet in offices in London where this competition is established, we are receiving reports of the loss of 20-30% of mail. At a certain point this trend becomes impossible to reverse. The country would then be left with an inadequate postal service, and a busted provider of the universal service.

The negative consequences of this competition are clear and that is before we even address the question of how companies like TNT are able to compete. The fact is that they do so solely by removing the safety net on postal workers’ terms and conditions. They're utilising zero-hour contracts, and paying minimum wage rates, or just above. So, not only is the universal service threatened but in the midst of a cost of living crisis, the living standards of postal workers also further face the axe.

We must demand action now. We are grateful for the support of the Trade Union Group of MPs and Katy Clark MP, who represents the CWU on the TUG Executive, tabled an Early Day Motion on this very issue. In EDM 151 before Parliament, MPs are demanding Ofcom review delivery competition and "… determine quickly any regularity changes needed to protect the Universal Postal Service”. Such a stance fits the bill - make sure your MP understands the importance of this issue.

[bustedflush]

I maintain, as before that the ONLY way we'll win is to refuse to handle access mail. RM can't refuse, but we can if it's a choice between reneging on the stupid agreement or saving jobs. We can't trust the hopeless regulator OFCOM who wouldn't know a Combi van from a trolley, and forget limp-wristed politicians.
Yes, RM loses 200 million a year in profits, but is still left with 300 millions. In a few months TNT/UKMail would be unable to function or to fulfil their contracts. Banks and other big businesses have to provide their customers with timely paper proofs if required (which they are by most of their customers who don't use online) so would have to use RM. Nobody else could deliver ALL addresses.
TNT play dirty with cherry picking, MW , zero-hours and recruitment standards. Time we did too before it's too late - or do we continue to fiddle while Rome burns???

[Brain Fury]

I maintain, as before that the ONLY way we'll win is to refuse to handle access mail. RM can't refuse, but we can if it's a choice between reneging on the stupid agreement or saving jobs. We can't trust the hopeless regulator OFCOM who wouldn't know a Combi van from a trolley, and forget limp-wristed politicians.
Yes, RM loses 200 million a year in profits, but is still left with 300 millions. In a few months TNT/UKMail would be unable to function or to fulfil their contracts. Banks and other big businesses have to provide their customers with timely paper proofs if required (which they are by most of their customers who don't use online) so would have to use RM. Nobody else could deliver ALL addresses.
TNT play dirty with cherry picking, MW , zero-hours and recruitment standards. Time we did too before it's too late - or do we continue to fiddle while Rome burns???

Do you think that refusing to handle access mail would be consequence free for Royal Mail and the CWU?

[bustedflush]

I maintain, as before that the ONLY way we'll win is to refuse to handle access mail. RM can't refuse, but we can if it's a choice between reneging on the stupid agreement or saving jobs. We can't trust the hopeless regulator OFCOM who wouldn't know a Combi van from a trolley, and forget limp-wristed politicians.
Yes, RM loses 200 million a year in profits, but is still left with 300 millions. In a few months TNT/UKMail would be unable to function or to fulfil their contracts. Banks and other big businesses have to provide their customers with timely paper proofs if required (which they are by most of their customers who don't use online) so would have to use RM. Nobody else could deliver ALL addresses.
TNT play dirty with cherry picking, MW , zero-hours and recruitment standards. Time we did too before it's too late - or do we continue to fiddle while Rome burns???

Do you think that refusing to handle access mail would be consequence free for Royal Mail and the CWU?

Private company now - can choose their customers. Remember RM are only tied to the USO for their mail - so if access mail doesn't become their mail in the first place.......
As for the CWU if we are stuck between the devil and the deep blue sea?

[TrueBlueTerrier]

Consequences:

1. Royal Mail - fined multi-millions for failing to fulfil the USO - DSA mail comes under this and because of Access Headroom we cannot undercut competitors or refuse to handle their mail without legitimate cause.

2. CWU - Accounts sequestered if the Government deems that they sanctioned an unofficial action - not delivering TNT mail without a ballot would be that. If they did have a ballot then the AFG2014 agreement would be invalidated as per the no strike agreement.

3. Individual Postie - Suspension and sack for failing to carry out a reasonable request - Possible criminal conviction for delaying mail.

[bustedflush]

Consequences:

1. Royal Mail - fined multi-millions for failing to fulfil the USO - DSA mail comes under this and because of Access Headroom we cannot undercut competitors or refuse to handle their mail without legitimate cause.

Is seeing our jobs at significant risk, and the future of the company not a 'legitimate cause'? Surely DSA mail comes under the USO when RM deliver it, but not when TNT do?

2. CWU - Accounts sequestered if the Government deems that they sanctioned an unofficial action - not delivering TNT mail without a ballot would be that. If they did have a ballot then the AFG2014 agreement would be invalidated as per the no strike agreement.

Fair enough, circumstances have clearly changed now - significantly. Let's all have a bit of something rather than all of nothing?

3. Individual Postie - Suspension and sack for failing to carry out a reasonable request - Possible criminal conviction for delaying mail.

Irrelevant as I was talking a CWU collective action not in regard to any wildcat or lone-wolf actions.

We are now a private company. I cannot see any court enforcing such to make that company accept work that they don't want that will be ultimately detrimental to its longevity. If the USO is brought into, no problem - I'm sure TNT et al will then adhere to it.....

[Puppetmaster]

Is the problem Competition or senior Management ,who waste thousands of ponds on buying poor equipment ,such as brand new vans that need regenerating as they are not fit for purpose or PDAS that freeze up when scanning a special.

What about all the hangers on the planners all the excessive levels of Managers and the amount of line managers such high ratio of Managers to staff ,and the amount of Union officials who never due a delivery .

All the senior Managers who have no idea about the frontline.

Maybe if these issues were sorted out RM would be in a stronger position to take on completion .