privatisation

[stephen500]

(I wrote this letter in response to an article by Mark White in Hellmail
http://www.hellmail.co.uk/postalnews/te ... 1&zoneid=3)

Dear Sir,
The article by Mark White suggests that perhaps there is a ploy to run down Royal Mail to the point where there is no choice but to privatise the service.

An interesting but highly unlikely scenario. In the Financial times another article by John Ralfe implies that an obstacle to privatisation is the pension deficit of £5 billion and before any privatisation could take place that the government would have to take this deficit on.

http://www.ft.com/cms/s/0/9775ffd2-90c0 ... ck_check=1

In my opinion that will not happen, so Royal Mail is seeking to reduce this deficit. Whether it is because it wants to do the decent thing for pensioners or place the business on a financial footing for a sell out is hard to tell. All I say is that competition, so far, has benefited no one.

Not the customer who has now seen the end to Sunday collections, two deliveries, an increase in postage costs and reduced collections.

On the counter side we have had closures, which I do not lay at the door of Royal Mail but the government. It appears plain that the government with its withdrawal of pension and child benefit payments and TV licensing has by stealth reduced the income streams and enhanced counters losses. This perhaps allowed the government deliberately to increase losses to such an extent that it become politically acceptable to close so many branches.

Finally the effect on Royal Mail employees, they seem to be on a perpetual merry go round. At the start of Alan Leighton's tenure Royal Mail was in financial turmoil, which is turned around with the hard work of postal worker. Then we are told that we need to embrace competition and agree to the introduction of competition earlier then required. This sees Royal Mail enter into agreements with downstream access businesses that result in RM delivering these items at a loss.

The universal service requirement restricts profit further. So from a position of postal workers turning the business around, Royal Mail now seeks to react to a turmoil of its own making which came about by this early introduction of competition.

Now Royal Mail profits are squeezed they need to be improved by a reduction in pensions.
This pension time bomb was, in my opinion, constructed by both Royal Mail and the government. Royal Mail took a 17 year pension holiday when the fund was in surplus. Both they and the government, who through Gordon Brown's raid on pension funds, both reduced the fund which combining with the rise in life expectancy put the funds in a dangerous position.

So the customer and postal worker both lose out in the quest for a liberal postal service. There are no winners, a poorer service to the customer and worse terms and conditions for the employees.

In fact the only gainers appear to be Alan Leighton and Adam Crozier.