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Rivals boosted by threat of Royal Mail strikes
Page 6
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CM COVER STORY
By Joanna Bourke and Ian Tonkin
BUSINESSES ARE willing to drop Royal Mail in favour of a more consistent delivery service, as the threat of further national strikes loom over the beleagured postal service.
Some of the Royal Mail's main clients have expressed concerns over the effect industrial action will have on delivery services — especially during the build-up to Christmas. The uncertainty, however, has led to its rivals reporting increases in volumes as nervous customers turn their attention to alternative delivery networks.
As the Communications Workers Union (CWU) urged Royal Mail to reveal its business plan relating to its entire transformation programme in order to prevent prolonged strike action, the British Chambers of Commerce (BCC) entered the row by saying it -defies logic" in the current economic climate, and customers are already suffering due to postal delays.
Online retail giant Amazon says it has not cancelled its long-term contracts with the Royal Mail, but a spokesman adds: -With the pos sibility of strike action in the near future, we have been working on contingency measures with our other carriers to ensure we can continue to deliver to the high standards our customers expect."
The DVLA says it is also drafting contingency plans to stave off the worst effects of a strike: "The DVLA will implement a robust contingency plan to ensure the effect on our customers from any industrial action is minimised as far as possible," says a spokesman.
"The DVLA will work closely with Royal Mail, with meetings between both parties to ensure contingency plans are adequate."
Adam Marshall, BCC director of policy, argues: -This strike announcement defies logic at a time when businesses and government are working hard to move the UK economy back to growth.
"Postal delays are already hurting small businesses and major companies across the country... the CWU's call for strike action in the run-up to the busy Christmas period is akin to a death-wish."
However, the uncertainty has led to rival parcel carriers reporting a boost in volumes and shipment requests. Business Post expects a 10% rise in its parcels business, whereas City Link tells CM that volumes have already increased.
Robert Mattham, MD at online courier auction service, Shiply, says: "From the emails we've received, and the comments left on our blog, it is clear consumer confidence in Royal Mail is declining rapidly, and they [customers] are looking for alternatives" Royal Mail tells CM that it condemns the CWI3's plans.
Despite the turmoil, Royal Mail has secured a three-year £19.5m contract with the Qualifications and Curriculum Authority (OCA) to collect and deliver exam papers across England.