Of Com summary

[Martin Walsh]

This is a sumary of Of Coms report and announcement today !

Delivering postal users’ needs in a digital age

· Royal Mail needs to become more efficient and modernise its parcel network
· New Ofcom research shines a light on changing attitudes to postal services
· Reducing letter deliveries to five days a week would still meet the needs of nearly all people and businesses
· But changing delivery requirements alone would not sustain the universal service in the long term

Ofcom is calling on Royal Mail to modernise its network and become more efficient, in order to sustain the universal service and keep pace with postal users’ changing needs.
The postal market has changed dramatically in recent years. The number of letters people send and receive has fallen by around 5% each year since 2015, as people increasingly rely on email and other online communications.
Growth in online shopping has seen overall parcel volumes increase at a rate of around 10% per year since 2015. And these trends seem to have accelerated during the coronavirus pandemic, with Royal Mail reporting a 31% increase in its UK parcel volumes between April and September this year.
While the pandemic has made 2020 a particularly challenging year for Royal Mail, the issues facing the company due to the changing market and consumer behaviour were apparent before the pandemic started to have an impact.
Parcel delivery: Royal Mail must modernise and become more efficient
Ofcom’s annual monitoring report on the postal market sets out data and trends within the postal sector, and examines Royal Mail’s performance. In 2019/20, 2.8 billion parcels were sent and received in the UK – one billion more than in 2013 – in a market now worth over £10bn in revenues.
Our analysis of Royal Mail’s efficiency shows that costs in the part of the business responsible for the universal service increased last year. The company failed to make efficiency gains or meet the targets it set itself for improving productivity.
Unless Royal Mail can modernise its network to adapt to parcel customers’ changing needs, and operate more efficiently, the sustainability of the universal service could be at risk in the longer term.

Letter delivery: does the universal service reflect users’ needs?
Under legislation, the universal postal service requires Royal Mail to deliver letters six days a week (Monday to Saturday) and parcels five days a week (Monday to Friday) to every address in the UK, at a uniform price.
With the market continuing to change rapidly, Ofcom has carried out a comprehensive review of the needs of postal users across the UK, to see if the delivery requirements Royal Mail has to meet still reflect what people and businesses need today.[1]
We have asked people and businesses how they feel about a range of hypothetical changes to the universal service, to find out what would meet their needs. Any changes to the universal service’s minimum requirements could only be made by Government and Parliament, but the findings give an insight into how people’s attitudes to postal services have evolved.[2]
Our research found that the current six-day-a-week letter delivery requirement meets the needs of 98% of residential users and 97% of small and medium businesses (SMEs) in the UK. Reducing this to five days a week, but leaving all other elements of the service unchanged, would still meet the needs of 97% of residential and SME users.[3]
This suggests that reducing the letter deliveries requirement to five days a week would reflect postal users’ reasonable needs. It would potentially allow Royal Mail to make net cost savings of around £125m–£225m per year.
However, Royal Mail continues to face significant financial challenges and this saving alone would not be sufficient in itself to ensure the longer-term sustainability of the universal service.

Lindsey Fussell, Ofcom’s Networks and Communications Group Director, said: “Our research suggests that people’s needs would still be met if letter deliveries were reduced from six days a week to five.
“It would ultimately be for Parliament to decide whether this change is needed. However, Royal Mail must still modernise and become more efficient, to keep pace with customers’ changing needs.”

Next steps

We have researched whether the minimum requirements of the universal service reflect the reasonable needs of postal users. It would be for the UK Government to determine whether any changes are needed to these minimum requirements and to bring any proposals before Parliament.
Separately, we are reviewing the future regulatory framework for post. This will consider issues affecting the broader postal sector, as people’s reliance on parcels continues to grow. For example, we will look at continuing the requirements for Royal Mail to provide wholesale access to its network, and whether extra consumer protections are required in the parcels market. We will consult on these issues next year and conclude this review in 2022.

End
Contacts:
Harry Rippon
media.office@ofcom.org.uk
Tel: 0300 123 1795

[2yearpostie]

So as a reserve martin ive just been sacked?

[Martin Walsh]

‌ ‌ ‌ ‌ ‌
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Keith Williams Masthead

Dear colleague,



Today, Ofcom has published its User Needs Review - an independent assessment of the extent to which the Universal Service Obligation (USO) is meeting the reasonable needs of users of postal services. The USO means we are legally required to deliver to every UK address on a ‘one price goes anywhere’ basis. We must deliver letters six days a week, and parcels five days a week.



To stay relevant and sustainable, the Universal Service must adapt to life in the 21st Century. Ofcom’s User Needs Review has shown that reducing letter deliveries to five days a week would still meet the needs of nearly all people and businesses. In the last six months alone, letter volumes have fallen by around a third. The reduction in letter volumes has had a significant impact on the finances of the Universal Service which lost £180 million in the first half of the year. This, along with our own comprehensive customer research, demonstrates the need to rebalance the Universal Service in line with growing consumer demand for parcels, and lower usage of letters.



We are working hard to improve efficiency and transform our parcels operation. We have increased the automation of parcel sorting and are investing in two new parcel hubs. But at the same time we recognise that the business has failed to make the progress it would have liked on operational productivity and agree that this must change. Too many parcels are still sorted by hand, and we have not adapted quickly enough to the decline in letters. We’ve taken immediate steps to stabilise business performance and set Royal Mail back on a path towards profitability. But as we have said previously, these measures and the delivery of our transformation plan will not be enough, in themselves, to ensure the USO is financially sustainable in the long term.



Royal Mail is proud to deliver the ‘one price goes anywhere’ Universal Service which is so valued by customers across the UK. Our unique responsibility began in 1840 when the world’s first adhesive postage stamp, the Penny Black, was used as payment to create a uniform postage service. Times may have changed a lot, but the Universal Service remains vitally important. With changing user needs, which have been accelerated as a result of the pandemic, there is a clear need to move with the times.



We will consider Ofcom’s findings very carefully. We look forward to engaging further with Government, Ofcom, our unions and other stakeholders to ensure the Universal Service continues to meet the changing needs of consumers, and ensure it remains financially sustainable.



Keith Williams
Interim Executive Chair

[Martin Walsh]

CWU RESPONSE TO OFCOM STATEMENT ON UNIVERSAL SERVICE OBLIGATION

Responding to today’s press release from OFCOM CWU General Secretary Dave Ward said ‘At a time when postal services have never been more essential and we should be investing in our national infrastructure, we should be looking for ways to protect and enhance a six day universal postal service, not for reasons to cut it back.”

“While letter volumes have continued to decline, there is huge demand for affordable high quality parcel services that cover every part of the country and during the pandemic Royal Mail has handled over 90% of all Covid-19 testing kits. A 6 day universal service remains essential to the UK and we should be looking at building new products and services into it to support its long-term sustainability rather than managing its decline.”

“It is ironic that this news from the regulator has come the day before Black Friday, one of the busiest posting days of the year, when no other person in the country is thinking about how to cut their postal services. It is essential that the government and MPs protect the country’s infrastructure and do not move to scrap the universal service at the worst possible time.”

“Ofcom’s research shows that 40% of people would feel cut-off from society without a daily postal service and that 61% of people think it’s important to maintain a 6-day service. The role of the regulator and the government should be to ensure this continues and the CWU will be fighting to defend a vital public service.”

CWU Deputy General Secretary Terry Pullinger said “Once again Ofcom has produced a predictable conventional wisdom, but dated report, many countries have knee jerked towards reducing their USO and weakened the social inclusion and connectivity of their nations citizens. If this report was up to date it would reflect how the current pandemic has totally proven the worth of the 6-day USO which does not only deliver letters.”

“Ofcom make reference to the current USO being letters six days and parcel five days, and yet despite making a huge case for the need to be more efficient in delivering parcels, does not recommend moving USO parcels to six days. A move which would totally benefit the nation offering affordable guaranteed one price goes everywhere universal service six days a week, and if you are going there with parcels why would you not still deliver any available letters, surely that is efficient. The CWU would support that change, the CWU supports greater investment in parcel automation which would drive the efficiency they desire, the CWU support opening the delivery of commercial parcel offerings across the whole day from 7.00am to 19.00hrs and also seven days a week.’

“The Universal Postal Service Obligation is one of our greatest social inventions and has massively proved its worth again during this pandemic some 500 hundred years or more since it was first introduced. Whilst Ofcom enjoy loading the gun it would be unforgiveable for the Government to fire it, run that consultation again Ofcom and see the results you get from the public and businesses now having witnessed its true worth during 2020.”

ENDS

[2yearpostie]

Again, Martin as a reserve ive just lost my job?

[Phantom]

Thousands of Postmen/Women who are 60+ want to leave and are just sat waiting for VR's.

Your job is safe.

[chickenwittle]

CWU RESPONSE TO OFCOM STATEMENT ON UNIVERSAL SERVICE OBLIGATION

Responding to today’s press release from OFCOM CWU General Secretary Dave Ward said ‘At a time when postal services have never been more essential and we should be investing in our national infrastructure, we should be looking for ways to protect and enhance a six day universal postal service, not for reasons to cut it back.”

“While letter volumes have continued to decline, there is huge demand for affordable high quality parcel services that cover every part of the country and during the pandemic Royal Mail has handled over 90% of all Covid-19 testing kits. A 6 day universal service remains essential to the UK and we should be looking at building new products and services into it to support its long-term sustainability rather than managing its decline.”

“It is ironic that this news from the regulator has come the day before Black Friday, one of the busiest posting days of the year, when no other person in the country is thinking about how to cut their postal services. It is essential that the government and MPs protect the country’s infrastructure and do not move to scrap the universal service at the worst possible time.”

“Ofcom’s research shows that 40% of people would feel cut-off from society without a daily postal service and that 61% of people think it’s important to maintain a 6-day service. The role of the regulator and the government should be to ensure this continues and the CWU will be fighting to defend a vital public service.”

CWU Deputy General Secretary Terry Pullinger said “Once again Ofcom has produced a predictable conventional wisdom, but dated report, many countries have knee jerked towards reducing their USO and weakened the social inclusion and connectivity of their nations citizens. If this report was up to date it would reflect how the current pandemic has totally proven the worth of the 6-day USO which does not only deliver letters.”

“Ofcom make reference to the current USO being letters six days and parcel five days, and yet despite making a huge case for the need to be more efficient in delivering parcels, does not recommend moving USO parcels to six days. A move which would totally benefit the nation offering affordable guaranteed one price goes everywhere universal service six days a week, and if you are going there with parcels why would you not still deliver any available letters, surely that is efficient. The CWU would support that change, the CWU supports greater investment in parcel automation which would drive the efficiency they desire, the CWU support opening the delivery of commercial parcel offerings across the whole day from 7.00am to 19.00hrs and also seven days a week.’

“The Universal Postal Service Obligation is one of our greatest social inventions and has massively proved its worth again during this pandemic some 500 hundred years or more since it was first introduced. Whilst Ofcom enjoy loading the gun it would be unforgiveable for the Government to fire it, run that consultation again Ofcom and see the results you get from the public and businesses now having witnessed its true worth during 2020.”

ENDS

These 2 sound like a couple of dinosaurs, the public couldn’t care less about getting letters on a Saturday.ofcom are right here , wether you like it or not .

[Martin Walsh]

2 year postie there is a long way to go on the USO change , it is not likely to come in till late 2022 and will require primary and secondary legislation.

The CWU’s position is clear that we would like to protect the 6 days USO. Additionally within the current talks we are looking to achieve further statements around job security and MTSF.

[P13]

Again, Martin as a reserve ive just lost my job?

Why i have you lost your job

[2yearpostie]

2 year postie there is a long way to go on the USO change , it is not likely to come in till late 2022 and will require primary and secondary legislation.

The CWU’s position is clear that we would like to protect the 6 days USO. Additionally within the current talks we are looking to achieve further statements around job security and MTSF.

Thanks for the reply, im happy as long as i keep a job in my local office doing something.Not bothered when or what or even about a pay rise, i just need to keep my job.

[2yearpostie]

Again, Martin as a reserve ive just lost my job?

Why i have you lost your job

Because reserves cover the 6th day when the duty holder is off. no 6th day of uso no need for reserves.

[fb1969]

There may be no need for reserves, but it wouldn't mean all reserves would be sacked.

As others have said, people will leave between now and then and if RM don't replace them they have reduced the workforce. And even if they did replace them, since June 2020 all job adverts state a contract end date of June 2021, so anyone who has joined since then won't have to be kept on after that date - again it reduces the numbers.

[P13]

Again, Martin as a reserve ive just lost my job?

Why i have you lost your job

Because reserves cover the 6th day when the duty holder is off. no 6th day of uso no need for reserves.

No they don't, reserves cover annual leave and sick leave ,floaters cover days off

[tinkerdil]

"It is not likely to come in till late 2022".
You sound like there is a certain inevitability about a USO change Martin?

[daveyeff]

Again, Martin as a reserve ive just lost my job?

Why i have you lost your job

Because reserves cover the 6th day when the duty holder is off. no 6th day of uso no need for reserves.

No they don't, reserves cover annual leave and sick leave ,floaters cover days off

There will still be job losses. Floaters will be hit....but there are plenty of posties who want to go...so plenty senior staff in their late 50s early 60s, and staff with health problems will almost certainly want out, ofcom reckons RM will save upto 225 million a year from this so thats the redundancy packages sorted.