Business exodus from Royal Mail delivers blow to Leighton

Post by **TrueBlueTerrier** » 12 Nov 2007, 18:32

http://www.alanat.com/real_estate/busin ... -leighton/

November 11th, 2007

Royal Mail has suffered an exodus of big corporate clients, bringing to a head the battle between its chairman, Allan Leighton, and the Government over the future of the postal group.

Carphone Warehouse, Europe's biggest mobile phone retailer, last night joined a growing list of companies who are dumping Royal Mail in favour of cheaper postal services offered by rival providers. Carphone, which bills about six million households, revealed that it has switched to UK Mail, which is owned by Business Post.

BT and Centrica, two of Royal Mails biggest customers, announced yesterday that they were quitting Royal Mail. The end of those two contracts marks the biggest loss for Royal Mail since the opening-up of the postal market to competition three years ago.

Along with the loss of customers, Mr Leighton is also said to have been frustrated at waiting for Gordon, a reference to what Royal Mail has seen as foot-dragging by the Chancellor over plans for a part-privatisation.

Mr Leighton is seeking the Governments approval for a restructuring of Royal Mail, which would see the postal group transformed into a partnership in the mould of John Lewis. His aim is to award postal workers phantom shares valued at 5,000.

Relations between the Government and Royal Mail have also become strained as a result of a continued impasse over the share scheme.

Speculation about Mr Leightons future started last autumn when the DTI advertised for a deputy for the group. The expectation was that whoever was appointed as deputy would take over the top job.

The Government is also understood to have approached several leading business figures including Sir Philip Hampton, chairman of J Sainsbury, to replace Mr Leighton.

But the former Asda boss is understood to be determined to see out his contract at Royal Mail, which expires in March next year.

Even in the event of an agreement with the Government, Royal Mail expects the restructuring would be met by industrial action from the unions. But sources close to Mr Leighton say that he sees one of his key strengths as being able to secure a deal with workers.

His phantom share scheme has been strongly criticised by politicians and by unions, who see it as a first step towards privatisation of the group.

Yesterdays switch by BT and Centrica comes days after Royal Mail lost the vital contract to sort mail for the Department of Work and Pensions.

It is believed that more government departments will soon quit Royal Mail amid pressure from the Cabinet Office to reduce costs.

BT, whose contract is worth 90 million to TNT over three years, believes it will save 3 million a year by switching its second-class mail.

Gary Parker, of BTs procurement division, said: Their [TNTs] offer on price and service delivers significant benefits for BT and its customers.

Royal Mail said it was impeded from offering lower terms to keep the business of some big customers because of regulatory controls.

Post by **dvbuk55** » 12 Nov 2007, 18:53

If the Dept of Works and Pensions are joining the Exodus then what does that say for the Governments committment to the CWU and its members - then of course we will still end up delivering it all anyway - even cheaper than we can do it ourselves?

tenpole tudorsack · Post by **tenpole tudorsack** » 12 Nov 2007, 18:59

Message to Gordon Brown..."my god, why hast thou forsaken me?"

Post by **dvbuk55** » 12 Nov 2007, 19:10

And in his darkest hour Billy could be heard to groan

"Eli Eli Lama sabachthani" - only in Liverpudlian Aramaic, when he finds out Gordy has backtracked on his deal.

k979aaa · Post by **k979aaa** » 12 Nov 2007, 19:10

tenpole tudorsack wrote:Message to Gordon Brown..."my god, why hast thou forsaken me?"

GORDON IS STUFFING HIS FAT CHOP'S AT THE LORD MAYOR'S BANQUET TONIGHT!. HOPEFULLY HE WILL CHOKE ON HIS SPOTTED DICK (HUTTON)!.

tenpole tudorsack · Post by **tenpole tudorsack** » 12 Nov 2007, 19:13

k979aaa wrote:
tenpole tudorsack wrote:Message to Gordon Brown..."my god, why hast thou forsaken me?"
GORDON IS STUFFING HIS FAT CHOP'S AT THE LORD MAYOR'S BANQUET TONIGHT!. HOPEFULLY HE WILL CHOKE ON HIS SPOTTED DICK (HUTTON)!.

...and the "lamb" (Royal Mail) was led to sacrifice...!

k979aaa · Post by **k979aaa** » 12 Nov 2007, 19:19

tenpole tudorsack wrote:
k979aaa wrote:
tenpole tudorsack wrote:Message to Gordon Brown..."my god, why hast thou forsaken me?"
GORDON IS STUFFING HIS FAT CHOP'S AT THE LORD MAYOR'S BANQUET TONIGHT!. HOPEFULLY HE WILL CHOKE ON HIS SPOTTED DICK (HUTTON)!.
...and the "lamb" (Royal Mail) was led to sacrifice...!

death by a thousand cut's

tenpole tudorsack · Post by **tenpole tudorsack** » 12 Nov 2007, 19:21

...or was that twenty something cuts...? Ha Ha!

ROCKY · Post by **ROCKY** » 12 Nov 2007, 19:53

must be another pay rise due for adam and al by the sound of this news,wonder what the bloke who led the charge of the light brigade got as a bonus compared with these 2 hopeless leaders

k979aaa · Post by **k979aaa** » 12 Nov 2007, 20:02

I suppose it all come's down to if their is a part-time vacancy at T.N.T in march 2008. :lfo

Post by **Carnoustie** » 12 Nov 2007, 20:04

THIS PRESS ARTICLE IS RE-HASHED FROM AN ARTICLE FIRST PUBLISHED IN JANUARY !!!!!!!!

Some 'news' providers republish online 'stories' that are not current, despite bearing a recent date on their website. Read through it - the references to a John Lewis type ownership scheme were being reported earlier this year. We all know HM Government told our two clowns to :cfo :lfo
The loss of the Department for Work and Pensions contract happened absolutely ages ago, yet this article is written as if happened only recently !!!

check out the date on the BBC's reporting of the same story at http://news.bbc.co.uk/1/hi/business/6240653.stm

tenpole tudorsack · Post by **tenpole tudorsack** » 12 Nov 2007, 20:13

ROCKY wrote:must be another pay rise due for adam and al by the sound of this news,wonder what the bloke who led the charge of the light brigade got as a bonus compared with these 2 hopeless leaders

A roundshot thru' the head...didn't have to think anymore!

crocodillapig · Post by **crocodillapig** » 12 Nov 2007, 20:24

in the land of the blind the one-eyed man shall be king.

tenpole tudorsack · Post by **tenpole tudorsack** » 12 Nov 2007, 20:29

crocodillapig wrote:in the land of the blind the one-eyed man shall be king.

...as said by Nelson as he walked to the second-hand shop?

Post by **kingtubby** » 13 Nov 2007, 17:28

Carnoustie wrote:THIS PRESS ARTICLE IS RE-HASHED FROM AN ARTICLE FIRST PUBLISHED IN JANUARY !!!!!!!!

Correct. Carphone Warehouse and BT have been using DSA for quite a while now.