Union says financial results prove modernisation is possible in public sector


The Royal Mail’s half-year financial results prove modernisation can be successful within the public sector, says the CWU.

Results published yesterday by the Royal Mail showed revenues, profits and profit margins all up, although the CWU also warns the results are masking some of the problems in the industry and calls on the regulator to step in to protect the universal service.

This is the first set of financial results since the price rises came into force, and since the Post Office and pension deficit were removed from Royal Mail Group.

CWU deputy general secretary Dave Ward said: “These results are proof that positive change and modernisation can be made in the public sector. There is no need for privatisation as a solution to business transformation. Change is being successfully delivered by postal workers daily throughout the company. Postal workers are Royal Mail’s greatest asset and should be recognised as such.

“Royal Mail is doing its bit to change, but the regulator must now step in to protect the universal service. Competition from private companies is undermining Royal Mail’s ability to provide an affordable service to every part of the UK.

“We want a fair day’s work for a fair day’s pay bringing quality postal services to everyone. That’s being undermined by the way competition destabilises the universal service – companies being allowed to cherry-pick profitable contracts while paying low wages for example. There’s also a problem with pressure that Royal Mail managers are putting on delivery workers to make unrealistic cost savings. This is causing mayhem in many offices with staff being pressured to work unpaid overtime when really the managers have got the workloads wrong. It’s all linked back to the way competition is being mis-managed.

“There’s a bright future for the mail industry as Royal Mail’s results and the growth in packets and parcels show, but it will only work if the universal service and postal workers are put at the heart of change. Ofcom’s decisions have the potential to make or break this industry.

“We don’t want competition at any cost. Closures, bullying, cost cutting and privatisation will destroy the industry. We’ll stand up to protect it.”


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