Royal Mail boss criticises Ofcom’s ‘frustratingly slow’ timetable

[TopperGas]

From today's The Times:

Royal Mail boss criticises Ofcom’s ‘frustratingly slow’ timetable

The chairman of Royal Mail’s parent company has criticised the slow timetable of Ofcom’s consultation on reform of the struggling postal operator’s universal service obligation.
Keith Williams, 68, told International Distribution Services’ shareholders at Wednesday’s annual meeting, that while the loss-making Royal Mail welcomed Ofcom’s plans to consult, the process is “frustratingly slow”, with no decision due until next summer.
“We’ve spent the last four years ping-ponging back between government and Ofcom while [letter] volumes have dropped even further,” he said.
Amid the strain on Royal Mail’s finances from the long-term decline in the letters market and following sustained lobbying, Ofcom said this month that before launching a formal consultation early next year, it would assess loosening the former state operator’s obligations, which includes a requirement to deliver items everywhere in the UK for a uniform price.
The proposals include scrapping second-class deliveries on Saturdays but continuing to deliver within three working days, and retaining a next-day first-class service for six days a week. The reforms are being resisted by the Greeting Card Association and the Communication Workers Union.
At Wednesday’s meeting at Newbury Racecourse in Berkshire, where the board were quizzed by retail shareholders and union members, Williams, a former boss of British Airways, also urged shareholders to back the £3.57 billion, 370p-per-share takeover offer from EP Group, a conglomerate controlled by Daniel Kretinsky, IDS’s largest shareholder.
The bid, which remains subject to government and investor approval, represents a “significant premium” of 72.7 per cent, he said, “balanced against … the need for further significant strategic investments”, and also “reflects the bidder’s view on uncertainty over the nature and timing of USO reform”.
Williams called Royal Mail a “special asset” with a “unique role in society” which is “why we spent as much time on the undertakings to protect Royal Mail going forward as we did on the valuation”.
He called the five-year undertakings from EP Group to the government, including over Royal Mail’s UK headquarters, “in commercial terms, quite a long time… as long as the life of a parliament”.
A spokesman for Ofcom said: “In response to our national debate on reforming the universal postal service, we only recently received a detailed plan from Royal Mail on how that could work in practice. We’re legally required to consult publicly on any proposals, and make sure any changes meet the needs of postal users, which is why we’re carrying out in-depth consumer research.
“People have already told us they’re fed up with Royal Mail’s poor performance, and there are things the company can get on with right now to turn that around"

Equally OFCOM could get on and make a decision this year!! It seems pointless RM taking on extra posties now if OFCOM are going to approve the proposed changed next year, which looks enviable when they've not come up with an counter proposals too date.

[rogersh]

"Equally OFCOM could get on and make a decision this year!! It seems pointless RM taking on extra posties now if OFCOM are going to approve the proposed changed next year, which looks enviable when they've not come up with an counter proposals too date."

Why is it "Pointless" for RM to take on extra posties. Surely the probation period for new recruits gives RM scope to terminate any new contracts if necessary.

[qwerty2]

Keith (Kenneth) Williams, 68 - retire you money grabbing ….
One of Simon Thompson bumchums
Take Rickyeeee!!! With you as well

[derekm]

Keith (Kenneth) Williams, 68 - retire you money grabbing ….
One of Simon Thompson bumchums
Take Rickyeeee!!! With you as well

Totally agree. The man responsible for the decline of Royal Mail.

[ted_e_bear]

f**k me, Royal Mail complaining that it takes ages to get something sorted, well at least they're experts in that field

[tractorboy2]

I thought the takeover bid was supposed to be voted on at the AGM.

[Mr Rush]

Williams called Royal Mail a “special asset” with a “unique role in society”

So, naturally, it's in private hands. It belongs in a museum... or nationalised. Whichever comes first.

[TopperGas]

"Equally OFCOM could get on and make a decision this year!! It seems pointless RM taking on extra posties now if OFCOM are going to approve the proposed changed next year, which looks enviable when they've not come up with an counter proposals too date."

Why is it "Pointless" for RM to take on extra posties. Surely the probation period for new recruits gives RM scope to terminate any new contracts if necessary.

I thought poor performance etc needed to be one of the grounds for termination not simply lack of work? Plus recruiting new staff costs RM money for each new employee.

[Moose67]

The reason mail is dropping is because of your cunning plan to keep putting up prices and giving a dreadful service and then blaming OFCOM if you look in the mirror you will see the person to blame you CLOWN

[rogersh]

"Equally OFCOM could get on and make a decision this year!! It seems pointless RM taking on extra posties now if OFCOM are going to approve the proposed changed next year, which looks enviable when they've not come up with an counter proposals too date."

Why is it "Pointless" for RM to take on extra posties. Surely the probation period for new recruits gives RM scope to terminate any new contracts if necessary.

I thought poor performance etc needed to be one of the grounds for termination not simply lack of work? Plus recruiting new staff costs RM money for each new employee.

Back in September 2008 a group of us (circa 12) were given a 3 month contract at Bristol MC. This led to 2 more 3 month contracts. At the end of that those who remained were not retained. As I recall we were told this was due to changed circumstances within the company.

[TopperGas]

"Equally OFCOM could get on and make a decision this year!! It seems pointless RM taking on extra posties now if OFCOM are going to approve the proposed changed next year, which looks enviable when they've not come up with an counter proposals too date."

Why is it "Pointless" for RM to take on extra posties. Surely the probation period for new recruits gives RM scope to terminate any new contracts if necessary.

I thought poor performance etc needed to be one of the grounds for termination not simply lack of work? Plus recruiting new staff costs RM money for each new employee.

Back in September 2008 a group of us (circa 12) were given a 3 month contract at Bristol MC. This led to 2 more 3 month contracts. At the end of that those who remained were not retained. As I recall we were told this was due to changed circumstances within the company.

A temp contract is different than a permanent one, once you get one if you stay out of trouble then there's no way RM can dismiss you without making you redundant.

[rogersh]

"Equally OFCOM could get on and make a decision this year!! It seems pointless RM taking on extra posties now if OFCOM are going to approve the proposed changed next year, which looks enviable when they've not come up with an counter proposals too date."

Why is it "Pointless" for RM to take on extra posties. Surely the probation period for new recruits gives RM scope to terminate any new contracts if necessary.

I thought poor performance etc needed to be one of the grounds for termination not simply lack of work? Plus recruiting new staff costs RM money for each new employee.

Back in September 2008 a group of us (circa 12) were given a 3 month contract at Bristol MC. This led to 2 more 3 month contracts. At the end of that those who remained were not retained. As I recall we were told this was due to changed circumstances within the company.

A temp contract is different than a permanent one, once you get one if you stay out of trouble then there's no way RM can dismiss you without making you redundant.

A recent job advert.....on completion of 6 month probation period.

When a group of us started in 2013 we were given 8 three month contracts & only given permanent contracts after 2 years.

If you have less than two years' continuous employment with your employer, your employer can dismiss you by giving you no more than statutory or contractual notice.

[TopperGas]

Labour's Employment Rights Bill when introduced will see an end to that.

[GRS]

Keep dragging your heels Ofcom. Take as long as you want!!!