Royal Mail to increase cost cutting to 600m a year

Post by **POSTMAN** » 17 Nov 2016, 11:51

http://www.bbc.co.uk/news/business-your-money-38009980" onclick="window.open(this.href);return false;

Royal Mail has increased its target for cost savings as it reported a small rise in half-year revenues.

The company is now seeking cost savings of £600m a year, up from a previous target of £500m.

Royal Mail reported a 1% rise in revenue to £4.6bn for the half year to 25 September.

The trend of fewer letters being sent through the post continued, with total letter revenues falling by 3%, although parcel revenues grew by 3%.

"We delivered UK parcel volume and revenue growth including new contract wins," said Moya Greene, Royal Mail's chief executive.
Operating profit before transformation costs for the six month period fell 5% to £320m from £342m.

Ms Greene said the Christmas period would be crucial for the full-year results.

"Extensive planning, which began in the spring, will help us to manage our busiest time," she said. "This includes the recruitment of over 19,000 temporary staff and opening nine temporary parcel sort centres."

Royal Mail competitor UK Mail - which is being bought by Deutsche Post - said half-year revenues had fallen to £230m from £237m a year earlier, although pre-tax profits rose to £5.8m from £2.2m.

Pompey Boy · Post by **Pompey Boy** » 17 Nov 2016, 14:58

What they really need is a new breed of postman/woman ie a person that can be in two places at one time, that doesn't need to eat, drink or go to the loo, has the fitness of a Royal Marine Commando to achieve walk speeds and be able to drive like an F1 driver to keep to time on collections.

jack~jack · Post by **jack~jack** » 17 Nov 2016, 17:56

That is funny, because it's true. We also need more managers (one per worker) to sit , drink coffee, play games on Internet, talk about performance and go home early.

Newbie001 · Post by **Newbie001** » 17 Nov 2016, 20:30

Pompey Boy wrote:What they really need is a new breed of postman/woman ie a person that can be in two places at one time, that doesn't need to eat, drink or go to the loo, has the fitness of a Royal Marine Commando to achieve walk speeds and be able to drive like an F1 driver to keep to time on collections.

Problem is too many posties are already doing this (maybe not two places at once). That's why they expect it from everyone.

Post by **IloveMYredTROLLEY!** » 18 Nov 2016, 18:08

OPGs claiming an average of their previous 12 weeks overtime on top of their contract hours for four holiday weeks per year really is going to put a spanner in the works in this cost savings exercise.

wannabeek · Post by **wannabeek** » 19 Nov 2016, 15:47

Newbie001 wrote:
Pompey Boy wrote:What they really need is a new breed of postman/woman ie a person that can be in two places at one time, that doesn't need to eat, drink or go to the loo, has the fitness of a Royal Marine Commando to achieve walk speeds and be able to drive like an F1 driver to keep to time on collections.
Problem is too many posties are already doing this (maybe not two places at once). That's why they expect it from everyone.

Absolutely true. That behaviour is the norm in most offices I have worked.

"If I try to deliver to neighbours I'll never get round."; "If I take a break I'll not get done in time."; "If I cut off they'll call me into the office"; "If I don't sprint around on a Saturday then I won't get time to take the lapsing so then they won't let me get away early to catch the footie."

I'm sure most of you have heard all this and worse many times. Basically we're screwed.

PS - 2 places at once does happen. Scan a special and sign for it when you are miles from it and then just deliver it when you finally get there. That's effecively being in 2 places at once and many do it regularly.

Pompey Boy · Post by **Pompey Boy** » 19 Nov 2016, 18:29

wannabeek wrote:
PS - 2 places at once does happen. Scan a special and sign for it when you are miles from it and then just deliver it when you finally get there. That's effecively being in 2 places at once and many do it regularly.

This can be a bit risky, a bit like scanning a photocopied or photographed collection bar code some distance away from the actual collection point. PDAs have GPS and rumour has it that people have been sacked for this sort of thing.

Post by **TrueBlueTerrier** » 19 Nov 2016, 19:09

Pompey Boy wrote:
wannabeek wrote:
PS - 2 places at once does happen. Scan a special and sign for it when you are miles from it and then just deliver it when you finally get there. That's effecively being in 2 places at once and many do it regularly.
This can be a bit risky, a bit like scanning a photocopied or photographed collection bar code some distance away from the actual collection point. PDAs have GPS and rumour has it that people have been sacked for this sort of thing.

http://www.royalmailchat.co.uk/communit ... =1&t=68036" onclick="window.open(this.href);return false;

wannabeek · Post by **wannabeek** » 19 Nov 2016, 19:57

Yes. I am very aware that it is defrauding the customer and also RM but it saves the postie about 20 mins. So it will continue.

It means that they can maybe do extra lapsing, or maybe slope off home early, or maybe hide in a hedge until their finish time, or maybe not have an argument with bosses about why they went over.

I never do it, never have and never will but I am in the minority. It happens a lot on rural deliveries and I wish they'd use this new GPS tech to stamp it out. It really should be so easy with the new PDAs.

Spedley · Post by **Spedley** » 19 Nov 2016, 21:12

I'm sure I read a different story with the same figures.

Don't recall where but it said that Royal Mails modernisation and investment was passed it's peak and they were going to cut the spending from £600M to £500M

Post by **max49** » 30 Nov 2016, 19:41

All ready making savings in my area, won't pay out for parcels although they are done on overtime 52 weeks a year, so they just sit in the Yorks. Also questioning any excess delivery, it's just a joke.

Darren Bent · Post by **Darren Bent** » 04 Dec 2016, 16:37

Royal Mail should be looking to increase income by 750m a year not cut 600m

Creditshampoo · Post by **Creditshampoo** » 05 Dec 2016, 13:53

How can UK mail spend £230m but only have a profit of £5.8m what are they doing

Spedley · Post by **Spedley** » 07 Dec 2016, 08:31

i think it is the same a RM. You decide how much you want to pay in tax and then 'spend' your profits on bonuses and investments etc.

beechwood · Post by **beechwood** » 07 Dec 2016, 10:45

As one of those 19,000 casuals I would say cut back on the HR Admin and casuals as they've wasted man hours and materials, seriously over recruiting, it's been a real eye opener I now have a complete change of view on both the RM and the poor sods employed as casuals and the regulars. I've always like the two guys that deliver on our road, but now have even more respect for them