Royal Mail results show negative impact of competition

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Commenting on today's (Wednesday's) Royal Mail half year results - which show profits down from £353million to £279m - the Communication Workers Union (CWU) says this is "further proof direct delivery competition is damaging the financial sustainability of the universal postal service".

CWU renewed its call for postal regulator Ofcom to urgently review Royal Mail's ability to deliver the universal service obligation and put a cap on competition.
"Today's results from Royal Mail shows the impact unregulated, intense and aggressive competition is having on the company's revenues."

Dave Ward, CWU deputy general secretary, said: "Today's results from Royal Mail shows the impact unregulated, intense and aggressive competition is having on the company's revenues.

"As we approach the busiest time of the year for Royal Mail, postmen and women will be working hard delivering letters and parcels six-days-a-week, right up to

Christmas Eve. But amid such unfettered competition in the postal sector, it will be difficult for Royal Mail to sustain its duty to deliver the universal service obligation in the coming years.

"We need Ofcom to perform its primary statutory duty by urgently reviewing the threat competition poses to the universal postal service. We'd like to see a cap put on competition to Royal Mail. The results today are proof that direct delivery competition is damaging the financial sustainability of the universal postal service. We want a commitment that the USO will be protected in the future."
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Notes:
CWU represents non-managerial staff working throughout Royal Mail Group. CWU is the largest trade union in the communications sector with more than 200,000 members working in post, telecoms, mobile and financial services, working as delivery people, drivers, engineers, call centre staff, support services and other roles.
Royal Mail's results can be found here: http://www.royalmailgroup.com/investor- ... oad-centre" onclick="window.open(this.href);return false;
For more information please contact:
Sophie Kimber, CWU press officer, tel: 020 8971 7267, mobile: 0779 3314249, e-mail: skimber@cwu.org
Kevin Slocombe, CWU head of communications, mobile: 07714504413, e-mail: kslocombe@cwu.org
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