Ofcom investigates Royal Mail after it misses delivery targets again

[RobertT]

https://www.morningstar.co.uk/uk/news/A ... again.aspx

Regulators have launched an investigation into International Distribution Services PLC's Royal Mail after it delivered just over three-quarters of first-class post on time last year, missing its delivery targets set by the communications watchdog.

The company said 76.3% of first-class mail arrived within one working day in the 12 months to the end of March.

The figure marks a slight improvement on the previous year, when it was 74.5%, but it represents another 12 months in which Royal Mail has missed its delivery targets set by Ofcom.

Under the watchdog's rules, 93% of first-class mail must be delivered within one working day of collection, excluding Christmas.

An Ofcom statement on Friday said: "If we determine that Royal Mail has failed to comply with its obligations, we will consider whether to impose a financial penalty."

Ofcom has already fined Royal Mail a combined GBP16 million for missing its post delivery targets in the previous two years.

The company also missed its 98.5% target of second-class post being delivered in three days, delivering only 92.2% within the time frame, slightly down on last year.

Royal Mail Chief Operating Officer Alistair Cochrane said: "Our quality of service is not yet where we want it to be and we will continue to work hard to deliver the standards our customers expect.

"We are actively modernising Royal Mail, and while these efforts are beginning to deliver results, we know there is still more to do."

The postal service is in the process of adapting to the declining volumes of letters and growing demands for larger parcels and next-day deliveries.

It is trying to improve reliability through "recruitment and retention, reducing sickness absence, extending delivery times and increased automation", it said.

Cochrane reiterated Royal Mail's longstanding claim that its one-price-goes-anywhere so-called universal service obligation needs reform.

The universal service currently requires Royal Mail to deliver letters six days a week and parcels five days a week, but is under review.

It comes after Royal Mail raised stamp prices to GBP1.70 for a first-class stamp in April, marking the sixth price hike in three years.

Responding to the figures on Friday, Tom MacInnes, director of policy at Citizens Advice, said: "For more than half a decade, consumers have been short-changed by our country's postal service.

"Royal Mail's quality of service targets should be there to protect customers, but the company is still getting away with hiking stamp prices while failing to deliver post on time.

"Our research has shown the damaging consequences of late post, like missed health appointments, fines, bills and vital government communications.

"But with no alternative provider to choose from, people are forced to grapple with poor service, year-on-year.

"With Ofcom considering relaxing the current delivery targets set for Royal Mail as part of the universal service obligation review, reliability remains a huge concern.

"The regulator must get off the sidelines and make the company do what it should've been doing all along – giving paying customers the service they deserve."

The latest figures comes after Czech billionaire Daniel Kretinsky agreed to buy Royal Mail last year in a GBP3.57 billion deal.

International Distribution Services shares were 0.1% lower at 359.00 pence each on Friday afternoon in London, giving it a market capitalisation of GBP3.44 billion.

[SkiSunday]

Oh dear, another paltry fine of about 0.01% of the business' annual earnings incoming. I'm sure that will make DK buck up his ideas

[dazzler123]

remember last year Ofcom and their thorough investgation found no evidence of RM prioritising mail over parcels

[Mr Rush]

"We are actively modernising Royal Mail [...]"

Modernity is not ipso facto good. It is now a fully thought-terminating cliche.

[SkiSunday]

"We are actively modernising Royal Mail [...]"

Modernity is not ipso facto good. It is now a fully thought-terminating cliche.

a genuine point, well presented Mr Rush.

[funkflex55]

Looks like having us driving around delivering first class mail like bell ends wasn't enough to hit the target.

Also, it was prioritising tracked over mail that they found no evidence of. That definitely still doesn't happen daily everywhere (concentrate on the tracked!)

[postslippete]

Ofcom fined RM £16 million over the last two years which is pocket change for a company worth over £3 billion. RM isn't fixing these failures but re-writing the rules so they no longer count by weakening the USO.

remember last year Ofcom and their thorough investgation found no evidence of RM prioritising mail over parcels

Ofcom's conclusion was a complete whitewash as every postie and their dog knows that letters are still being left behind in frames whilst the tracked parcels are being prioritised! The latest figures show that RM have once again missed their targets by a country mile and yet OfCom have allowed them to raise stamp prices 6 times in 3 years. This regulator isn't regulating - it's enabling, and workers and the public deserve better.

[Delbhoy]

Ofcom fined RM £16 million over the last two years which is pocket change for a company worth over £3 billion. RM isn't fixing these failures but re-writing the rules so they no longer count by weakening the USO.

remember last year Ofcom and their thorough investgation found no evidence of RM prioritising mail over parcels

Ofcom's conclusion was a complete whitewash as every postie and their dog knows that letters are still being left behind in frames whilst the tracked parcels are being prioritised! The latest figures show that RM have once again missed their targets by a country mile and yet OfCom have allowed them to raise stamp prices 6 times in 3 years. This regulator isn't regulating - it's enabling, and workers and the public deserve better.

absolute spot on. treating the public like mugs

[GizzardPuke]

Also, it was prioritising tracked over mail that they found no evidence of. That definitely still doesn't happen daily everywhere (concentrate on the tracked!)

Bloom & Wild show their Tracked Q of S figures on their website. I used them a couple of weeks ago (they are good) and they're currently showing 94% arriving on time. I've seen it up at 95% before and as low as 91%. I don't know how often they update it.
If Ofcom really wanted evidence they could ask all these large users what the figures are.

[SkiSunday]

Also, it was prioritising tracked over mail that they found no evidence of. That definitely still doesn't happen daily everywhere (concentrate on the tracked!)

Bloom & Wild show their Tracked Q of S figures on their website. I used them a couple of weeks ago (they are good) and they're currently showing 94% arriving on time. I've seen it up at 95% before and as low as 91%. I don't know how often they update it.
If Ofcom really wanted evidence they could ask all these large users what the figures are.

Also Ofcom could just send in an undercover OPG for 5 minutes. Ah yes, it's already been done numerous times over the years by certain journalists and swept under that massive carpet lol. Must need a good laundering soon

[TopperGas]

How can RM be grappling with declining mail if they can only deliver 75% of it on time, it sounds more like they've given up trying, if I were OFCOM if tell RM.tomget their own house in order before they think about any USO reforms, as just how bad will it be after the reforms?

[worktotime]

to right but yet again the posties have been saying what isnt getting done daily and they dont see this ? , it will be worse if this new uso comes in there will be even more failures trying to do 2 days worth of work everyday isnt going to happen , and if they are just using it as a saving for the company and the scary part is walsh , ward etc are trying to push it through , they should just leave it to ofcon to make the decision .

[bo72]

If my office is anything to go by I'm surprised it's as high as 76.5%. I don't think we are anywhere near that, in fact it's quiet a surprise to deliver a dated first class letter that's on time. They are often a week, or even two late. We are also definitely told to prioritise tracked parcels and mail over untracked mail.

[Decky Boy]

Posted postcards 1st class from Edinburgh, Glasgow and York last year (11 in total)... not one arrived next day... and the longest took 5 days... all were to addresses in Scotland (except one !) ... shocking service

[TopperGas]

Posted postcards 1st class from Edinburgh, Glasgow and York last year (11 in total)... not one arrived next day... and the longest took 5 days... all were to addresses in Scotland (except one !) ... shocking service

Just imagine if RM ran a train company, you'd get on a train in the morning and it would be a anybody's guess when it arrived at your destination!!

If you tried to claim compensation you'd just be told, tough, as what do you expect when passenger numbers are down!!!