Ofcom pushes ahead with Royal Mail investigation

Post by **TrueBlueTerrier** » 21 May 2016, 14:54

http://www.ft.com/fastft/2016/05/20/ofc ... stigation/" onclick="window.open(this.href);return false;

Urgent delivery.

Ofcom said it has determined there are “reasonable grounds” to believe that Royal Mail has contravened quality of service obligations, after the postal operator failed to meet performance targets for first-class mail, writes the FT’s Michael Pooler.

The communications watchdog launched an investigation last week following the admission by Royal Mail that it had “narrowly” missed a requirement to deliver 93 out of every 100 first-class items within one working day in the 2015-2016 financial year — instead achieving a rate of 92.5. The FTSE 100 company also came short of targets relating to postcode areas.

Royal Mail had claimed that its performance was affected by “events outside its control”. These included ‘Cyber Week’, the period of heightened online retailing activity at the start of the festive spending season. While Christmas itself has always been excluded from UK quality of service regulations because of exceptionally high mail volumes, Cyber Week last year fell outside the exemption. Taking these factors into account would have improved its performance, Royal Mail argued.

Ofcom said it had notified Royal Mail, which can make representations to the regulator by June 27.

It is another headache for the 500-year-old postal operator, which posted a one-third slump in full-year pre-tax profit on Thursday to £267m, as the fierce competition to deliver online goods meant greater parcel numbers failed to counteract the irreversible decline in letter traffic. That saw its shares tumble 3.9 per cent on the day.

Ofcom is also conducting a separate, root-and-branch review into Royal Mail that could lead to price controls.

Budfrog · Post by **Budfrog** » 21 May 2016, 15:41

Things are looking pretty gloomy and the drop in profits/QofS results can only mean one things - more pressure to do better with less resources.

Whilst I don't hold OFCOM responsible for the results of the business I believe there should be quarterly QofS League tables of all major carriers available in a format which allows business as well as private customers to make an informed choice.

Without Christmas the business would be up a creek without a paddle and as competitors increase the amount of mail they can process during the peak periods this safety net will become less and less secure.

Post by **IloveMYredTROLLEY!** » 21 May 2016, 15:59

Couldn't possibly be due to all those unfilled vacancies around the country, due to RM going bonkers with EVRs in the last ~12 months, possibly worsened by managers working to rule?

Gold Fox · Post by **Gold Fox** » 22 May 2016, 19:32

possibly worsened by managers working to rule?

No difference what so ever on our DO. Manager will not achieve their demands ... because our line managers say so.

Surreypostie · Post by **Surreypostie** » 23 May 2016, 16:38

Uhm... Dear Moya and the rest of your cronies, if we had enough staff to do the job we wouldn't be in this mess, have you ever tried putting a square peg in a round hole? It doesn't fit!

Post by **TrueBlueTerrier** » 23 May 2016, 16:41

El-Bandito · Post by **El-Bandito** » 23 May 2016, 17:44

I am coming up for my 20 year service award big deal i know. Most of my office remember we had 80% full time in each delivery office.1 bag with Max 7 bundles of mail usually a Thursday. Delivery driver delivered large packets. Yadda yadda. My intelligence is being insulted on a daily basis by the lies of management. Mail dying away. Poor performance. Lapse more and more. Management,stop listening to your superiors who work from a laptop and start listening to the ground troops!

borgpicard · Post by **borgpicard** » 23 May 2016, 19:39

Surreypostie wrote:Uhm... Dear Moya and the rest of your cronies, if we had enough staff to do the job we wouldn't be in this mess, have you ever tried putting a square peg in a round hole? It doesn't fit!

Post by **IloveMYredTROLLEY!** » 24 May 2016, 15:39

Gold Fox wrote:possibly worsened by managers working to rule?

No difference what so ever on our DO. Manager will not achieve their demands ... because our line managers say so.

At my depot, where there are many unfilled vacancies and overtime (including "lapsing" that will result in o/t) goodwill is drying up, managers have been trying to cover the loops not taken out and mask the unfilled vacancy issue. But with working to rule, I believe they are only doing what they can until their time, I just hope the USO failings are being recorded.