COGNOLINK CONSULTANTS - PAID RESEARCH - ADVICE

[TrueBlueTerrier]

LTB 516/15

No: 516/15


Ref:


Date: 7th August 2015



TO: ALL BRANCHES WITH POSTAL MEMBERS


Dear Colleague


RE: COGNOLINK CONSULTANTS

I am writing to alert branches to the activity of Cognolink a market research company based in New York. Under the title “Consulting Opportunity” Cognolink has written to a number of our postal organisers to say they are “working on behalf of a New York based hedge fund interested in the UK postal industry and labour relations in particular” and asking them to take part in “a paid 45 – 90 minute phone consultation”.

While market research is a long established activity in the commercial world, it is clear that the privatisation of Royal Mail and the liberalisation of the UK postal market is encouraging interest from potential investors, including massive US hedge funds looking for a profitable rate of return on any investment.

Aside from questioning the business motives of hedge funds and their future interest in the UK postal sector, there is clearly a risk that any Royal Mail employee taking part in any paid private consultation of this sort could be in breach of RM’s Code of Business Standards by potentially disclosing confidential business information. The Code (which is attached, see pages 15-17) states that employees must “not communicate with the media, shareholders or analysts unless they have been specifically authorised to do so” and that “RM employees with access to inside or potentially inside information must keep it strictly confidential and treat in accordance with Royal Mail’s Royal Mail’s Continuous Disclosure and Communications Policy”. Providing sensitive company and market information to hedge fund investors could also constitute a contravention of the UK’s competition rules. Both Ofcom and the Office of Fair Trading (OFT) have competition law powers and will take action against companies who are acting on a way that damages fair competition.

In light of these concerns, we are writing to all CWU Branches to alert you to Cognolink’s activity and ask you not to participate in any consultations. We also intend to alert Royal Mail to these developments, warning them about the potential risks to the business and to report this activity to Ofcom in the context of their obligation to ensure fair competition in postal services.

Against this backdrop, all Branches should ensure that the content of this LTB are circulated and brought to the attention of all Representatives and members.

Branches are encouraged to alert the DGS (P) Department of any future requests from Cognolink. Any queries about the content of this LTB should be addressed to the DGS (P) Department quoting reference LTB 516/15.



Yours Sincerely,



Terry Pullinger

Deputy General Secretary (Postal)