Royal Mail 6-day betrayal:May have to end 6 day deliveries

[POSTMAN]

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Royal Mail 6-day betrayal: Privatised postal giant may have to end daily deliveries


After profits slumped by £74million, it said allowing rivals to cherry pick lucrative business contracts could make the service no longer viable

Royal Mail has warned daily deliveries are under threat because of cut-throat competition.

The postal giant, which has seen its profits slump by £74million, says allowing rivals to cherry pick lucrative business contracts could make its six-day-a-week service no longer viable.

Royal Mail, unlike its competitors, must deliver to everyone in the country for the same price.

The company is calling on industry regulator Ofcom to urgently review the rules.

Royal Mail claimed rapid expansion by arch rival Whistl, formerly TNT, could reduce its revenue by £200million by 2017.

Whistl has begun doorstep deliveries in large cities but not every day or in rural areas.

Royal Mail boss Moya Greene said this “undermines the economics” of its nationwide delivery service.

Potential changes could see Royal Mail only delivering five times a week or being paid a subsidy.

Today’s warning makes a mockery of claims by Business Secretary Vince Cable that privatising Royal Mail would safeguard universal delivery.

Royal Mail also highlighted the threat from Amazon, which has begun delivering its own parcels.

Royal Mail said profits had dropped by 21% to £218million in the six months to the end of September.

Chuka Umunna, Labour’s Shadow Business Secretary, said: “The Tory-led Government’s fire sale of Royal Mail has put the essential services which consumers and small businesses rely on at risk.

“David Cameron’s promises to protect services are looking less and less credible by the day.

“This warning is deeply concerning and comes after consumers have already been hit with changes in collection times, with many last collections moving earlier in the day.”

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Despite Coalition government guarantees, the profit­-hungry mail company sold off cut­-price to City slickers is preparing to ditch its promise that you’ll always be able to post a letter anywhere in the UK at the same price.

And differential pricing will be only the start. Across the Channel in Holland, privatisation has brought casual labour, paid as little as possible to avoid giving the posties a contract of employment.

Here, it will be higher prices, zero­-hours contracts for the staff and fewer deliveries than the six days a week we get now.

How long before we have to collect our own post, including the mass junk mail that sustains the business?

There is also a social cost to higher profits. The friendly faces we know of postmen and women on their “walk” who look out for lonely old folk and people living on their own will be a thing of the past, as they are on the continent.

That’s the real cost of privatisation. Not the falling share price of Royal Mail, but the loss of another piece of the community fabric, another slice of history made by the Victorians who had a keen eye to commerce but a better understanding of society than the folk who now own and run Royal Mail.

The posties and their union leaders warned repeatedly that this would happen, but the Tory and Lib Dem politicians, driven by ideology and fake pledges to uphold the universal delivery, wouldn’t listen.

Perhaps they’ll listen now, but don’t bet on it.

[rainbowwarrior72]

I am not buying this panic reaction from RM I've seen this before re The £1B mega loss in 2001 and the pensions shortfall. I think they are using TNT/Whistl as an excuse to get rid of our T&Cs and I have suspected it from the off. I always thought Postcomm were used to get us privatised and now we are privatised they are coming for the rest. Just remember Amazon have a lot of ex RM managers. To be honest TNT/Whistl don't take that much work off us Amazon are the ones that are taking a lot of our work and they work 6days.

I think Billy and Dave will have to stand up and earn the mega salaries that they earn and fight our corner

[Budfrog]

I am not buying this panic reaction from RM I've seen this before re The £1B mega loss in 2001 and the pensions shortfall. I think they are using TNT/Whistl as an excuse to get rid of our T&Cs and I have suspected it from the off. I always thought Postcomm were used to get us privatised and now we are privatised they are coming for the rest. Just remember Amazon have a lot of ex RM managers. To be honest TNT/Whistl don't take that much work off us Amazon are the ones that are taking a lot of our work and they work 6days.

I think Billy and Dave will have to stand up and earn the mega salaries that they earn and fight our corner

There is a great deal of truth in what you say. Blaming Whistl the 'Cherry Picker' who deliver letters when RM's main failure is in the growth area of eCommerce parcels simply makes no sense and most people can see straight through the argument. To maintain T&Cs that are in the main far better than the competition requires an excellent service driven by senior managers who innovate and provide the staff responsible with the tools to do the job.

[cyclemech1]

As I've always thought, RM's accounts are routinely 'adjusted' to justify attacks on CWU grades T&C's.

How many times, over the last 20 years or so, have RM suddenly said "Oh no, we're losing £1m pounds a day, we need to take drastic action to turn the business around" and then they get some cronies of whoever is in government at the time in to slash and burn and then say "We've turned this business into a profit driven, lean organisation".

Then, a little while later, usually when the same cronies are leaving the business with golden handshakes, comes the cry " Oh no, we're losing (enter any amount you like) a day, we need to take drastic action to turn the business around" and they get new cronies in to come back for more.

I did 15 years as an OPG and this happened at least 3 times that I can remember.

[Rommagic]

After the election next year can you see us on a five day week?.

[rainbowwarrior72]

The stupid thing is RM have introduced the trial on sundays as per requested by Amazon. We need to concentrate on getting DSA inhouse and maybe look at other ways to make money. I also think click & collect by the retailers has played a part in the loss of traffic too. We seem to be going the way of ParcelForce T&C wise. We meed the right sort leadership to become the WCM business they have been aiming for years

[Rommagic]

Collect parcels from customers homes?,They could have our phone number call us back up to duty time if they was not in for a parcel.

[janitor]

Your having a laugh right, if they fail to understand leaving X amount of hours on 739 before attending the callers office, not ringing after x o'clock doesn't have a chance,your phone would be ringing all hours of the day and night.

[Mr_Pink]

Your having a laugh right, if they fail to understand leaving X amount of hours on 739 before attending the callers office, not ringing after x o'clock doesn't have a chance,your phone would be ringing all hours of the day and night.

Quite! And how would it work for reserves covering multiple duties at multiple offices

[Darren Bent]

and if this happens it will be Tuesday to Saturday rather than Monday to Friday.

[comeracing]

and if this happens it will be Tuesday to Saturday rather than Monday to Friday.

nope mon- fri

[NWpostie]

Can't see it happening, what is more likely to happen is 7 days deliveries in Urban areas particularly parcels, Rural areas will probably get deliveries 2 times a week delivered either to their houses or a hub where they can pick up the mail.

[interesting]

Either way
Big changes ahead

[mailman71]

It will be Tuesday to Saturday as Royal Mail know they get more people in on a Saturday.