Royal Mail faces union backlash over plans to cut Saturday deliveries

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https://www.yahoo.com/news/articles/roy ... 35404.html

Royal Mail is facing a backlash from unions over its plans to end second-class letter deliveries on Saturdays.

The Communication Workers Union (CWU), which represents more than 100,000 postal workers, has written to Royal Mail bosses warning that trials of its reduced service were not working.

Ofcom, the industry regulator, has given Royal Mail the green light to scrap second-class post on Saturdays and instead offer an alternate weekday service as part of a relaxation of its so-called universal service obligation (USO), which requires it to deliver anywhere in the country six days a week.

The company is carrying out trials of the reduced schedule in 37 delivery offices across the UK.

However, the CWU has warned that the model being trialled is overly complicated and urged Royal Mail bosses to take a different approach.

The union has also accused managers of failing to honour an agreement signed as part of the £3.6bn takeover of Royal Mail by Daniel Kretinsky, a Czech billionaire, this year.

The agreement with Mr Kretinsky’s EP Group promised a “reset” of industrial relations at the postal service after a bitter dispute that led to more than a year of strikes.

In a note to members, Dave Ward, the CWU general secretary, and Martin Walsh, his deputy, expressed “major disappointment” in how the company had handled both USO reform and the new agreement.

They wrote: “We believe the real problem is that there remains deep resentment amongst managers across the business that the EP Group agreement gives postal workers and their union a greater and more powerful say over how we jointly shape the future direction of the company.

“We cannot move forward when managers at all levels are not visibly and actively embracing the EP Group/CWU agreement, including all the commitments relating directly to the USO.”

Martin Seidenberg, the chief executive of International Distribution Services (IDS), Royal Mail’s parent company, insisted that the trials were working.

He said: “It is a very important reform for us but also for the country and of course for the Government and regulator, and the CWU have acknowledged that as well.

“That shows you already that there is, in principle, quite a strong alignment that this needs to happen for the company but also for the people.”

The CWU said it supported USO reform and that it was not deliberately trying to delay the rollout.

But the backlash, which comes ahead of an inaugural advisory board meeting between the CWU and EP Group next week, raises the risk that full reform will be pushed back.

Royal Mail is already expecting the process to drag into next year as it seeks to protect letter deliveries during the crucial Christmas period.

There are signs Royal Mail’s turnaround efforts were starting to pay off even ahead of Mr Kretinsky’s takeover and the delivery shake-up.

The company this week posted its first annual profit in three years. Ofcom has said that USO reform, which also includes a watering down of its delivery targets, could save it up to £425m a year.

A Royal Mail spokesman said: “Strong and collaborative working relationships with our trade unions are vitally important to ensure the success of the business.

“Royal Mail and EP Group remain fully committed to the agreement with the CWU and we continue to work with the CWU to implement that agreement.”