Royal Mail has asked the UK Government if it could stop delivering letters on Saturdays as it fights to become operationally profitable following a £219 million loss for the 6-month period up to the 25th of September.
The UK institution would continue to deliver parcels on all days of the week, but as it is seeing parcel volumes increase and letter volumes decrease they are looking for ways to make its way back to a sustainable model.
Royal Mail needs to ask the government for permission as it would require a change to the Universal Service, which states that letters must be delivered from Monday to Saturday.
To change the Universal Service, the Business Secretary would need to bring forward secondary legislation to amend the Postal Services Act 2011.
Similarly to the USPS in the USA and their Delivering for America plan, Royal Mail now finds itself at the crossroads of needing to take action in order to become profitable and sustainable for the future.
“We have always been clear we need change to survive. We have started turning the business around and will do whatever it takes.”
“We would prefer to reach an agreement with the Communication Workers Union (CWU) but in any case, we are moving ahead with changes to transform our business.” – Simon Thompson, Chief Executive of Royal Mail, said
Royal Mail & CWU Talks Continue
A big problem for Royal Mail remains with their ongoing despite with the Communication Workers Union and the threat of continuing strike action, especially on the run-up to their busiest time of year.
Some analysts believe that the recent strike action has cost Royal Mail upwards of £100 million with more strikes set to take place over the next few weeks coinciding with Black Friday and Cyber Monday peak dates.
We have been expecting an update from the CWU on the proposed strike action but it seems that talks and negotiations are still ongoing. Royal Mail did announce a brief statement saying they were hoping to avoid the upcoming strike action. In response, the CWU released this message to its members outlining their side of the ongoing negotiations.
We will of course keep you updated on any developments however it is not looking good for UK sellers and buyers if they use Royal Mail services over the next few weeks if there is no breakthrough.
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