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Royal Mail is not delivering

June 21, 2011 3 comments

‘Millions more have been spent on a fleet of new vans to replace the bikes the Royal Mail intends to scrap.’ Photograph: Christopher Thomond for the Guardian

As profits dive, it’s clear this management isn’t modernising, it’s running the company into the ground – but why?

 

Royal Mail’s profits fell from £180m in 2009 to £39m in 2010, a drop of around 78%. That sounds pretty disastrous, and is one of the reasons given for the impending privatisation of the company.

However, when you start to look more closely at the figures you begin to realise that all is not what it seems. For a start, the company did still make a profit, which is unique among public services. We don’t expect the police to make a profit, or the fire service or the NHS, do we? And I suspect that most of the British public aren’t at all worried if the Royal Mail makes a profit or not, as long as they get their letters delivered on time.

Historically the Royal Mail’s profits were used to subsidise the Post Office which is also an important public service. All of that will change, of course, when the Royal Mail is privatised and the link between the Royal Mail and the Post Office is broken. Once the Royal Mail is privatised, the Post Office will have to go its own way, and don’t be at all surprised when more and more rural post offices start to close, and the post office counter service becomes a small adjunct of Tesco, squeezed between the deli, the electrical counter and the pharmacy.

This shows you the mechanism by which the privatisation agenda operates. It splits a unified service into its constituent parts, hiving off the profitable bits, while keeping the unprofitable bits in the public domain. This is in effect a form of public subsidy. That which can make a profit is given over to the spivs and profiteers of the private sector, while the rest of us carry the can for the bits of the economy that can’t make a profit, thus threatening not only the particular services involved, but also the cohesion and unity of society as a whole.

Many blame the breakdown in Royal Mail profits on the incursion of new technology into the communications market. Or, as the Daily Mirror put it: “Royal Mail profits smashed by competition and Facebook.

This is simply not true. Most of the letters that people sent are still being sent. We might send birthday greetings to people we don’t know very well via Facebook, but how many of you have replaced the Christmas card list with a Facebook list in the last few years? Very few, I would suggest; none but the very young.

When you look at the real reason why profits are down it has virtually nothing to do with Facebook. It has everything to do with the Royal Mail spending vast amounts of money on a so-called modernisationprogramme that simply doesn’t work. £400m was spent on new machinery that actually slows down delivery.

We have two mail deliveries these days, instead of one. One is first thing in the morning, the way it used to be. The second is at about 9.20am in our office, which means full-time workers are now forced to take a break to wait for the lorry. So how is this “modernisation” exactly? By what process is it decided that a new machine which is slower than an old machine is actually more modern, just because you bought it more recently, or that having workers sitting around eating sandwiches is more efficient than having them delivering mail?

Millions more have been spent on a fleet of new vans to replace the bikes the Royal Mail intends to scrap. How crazy is that? To replace the world’s most energy-efficient machine, bar none with the polluting, inefficient internal combustion engine dependent on oil from the war-torn Middle East. To replace a tried and tested method of delivery in use for over 100 years, with an untried and untested method, that, everywhere it has been brought in, has been disastrous, as I’m sure people in a number of towns will testify.

Something very strange is happening here. It takes a radical redefinition of the English language to describe any of this as “modernisation”.

Also we have brand new uniforms. Who on Earth thought of that? Every single postal worker in the UK is being issued with a brand new set of clothes. New shirts, new trousers, new jackets, new caps, new waterproofs. And how much, exactly, did this cost, the refitting of an entire workforce? In this time of austerity and cutbacks, it seems, the Royal Mail judges fashion sense a more important issue than getting the mail delivered on time.

Finally, it is closing down hundreds of local delivery offices all over the country and relocating them to major city centre sites.

All of this is being done in the name of savings. It will cost less to maintain a single centralised office than a number of smaller offices. That’s the theory at least. But is it actually true? I’ve had my calculator out again and I’ve been working it out.

There are 50 workers each in the two offices in our area that are due to close – 100 altogether. It will take about half an hour each way to drive to and from the city. All of this has to be done in work time of course. We’re not counting the journeys each postal worker has to make to get to work and back. So that’s an hour of Royal Mail time spent getting us to and from the start of our rounds. We earn £8.86 an hour, so it will cost the company £886 a day, which is £5,316 a week, or £276,432 a year. Knock off days off and holidays, and the figure still comes in at around £250,000 a year. That’s a quarter of a million pounds spent on just getting the workforce to the start of the round every day.

How is that a “saving” exactly?

What kind of accountant adds a quarter of a million pounds to your wages bill and then describes it as a saving?

This is not to speak of the extra pollution of having hundreds of vans spluttering about during the rush hour or the cost in maintenance, petrol, tax and insurance, of running a fleet of vans. It’s not to speak of the traffic chaos in the city or parking problems around the new joint delivery office. It’s not to speak of the inconvenience for customers of having to travel eight miles to pick up their undelivered mail. According to the Royal Mail’s own figures this will be in the region of 100 a day in each of the two offices. I will leave it up to you to work out the figures on that.

All of this can only lead to one of two conclusions: either Royal Mail management is grossly incompetent, or it is running down the company on purpose, for some end that the rest of us have yet to be informed about.

Read more here.

Privatisation is the last thing Royal Mail needs

January 13, 2011 1 comment

Vince Cable announced his plans for the privatisation of Royal Mail in October. Photograph: Lewis Whyld/PA

Vince Cable needs to look beyond the headline figures and develop a long-term solution to Royal Mail’s problems

From Comment is free.

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The not so jolly postman

December 19, 2010 5 comments

‘Kids love us. We’re like Father Christmas bringing presents to your door’

 

Postal worker Roy Mayall loves his job – the fresh air, the early starts, even the Christmas rush. But this year it’s not quite so much fun. The service is being ‘modernised’, resulting in backlogs and delays. So will your cards get through?

From the Guardian.

Read more here.

No united front at the Royal Mail

October 27, 2010 1 comment

Memories of last year's postal workers' strike, which some managers broke, have not faded. Photograph: Jeff J Mitchell/Getty Images

The thought of striking managers caused hilarity in the posties’ smoking shed this morning. The thought of privatisation didn’t.

From the Guardian, Comment is free.

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The mood in the Royal Mail sorting office

September 16, 2010 3 comments

Vince Cable has spoken: Royal Mail is to be privatised. My colleagues wonder whether things can possibly get any worse…

From the Guardian.

Read the rest of the article here.

When Royal Mail modernisation means a worse service

July 20, 2010 Leave a comment

A walk-sequencing machine

New sorting machines have taken the last skill from our job and pushed back delivery times. More change, not for the better

From the Guardian, Comment is free. Read more here.

Royal Mail part-privatisation is a lose-lose situation

May 25, 2010 Leave a comment

Vince Cable’s proposal will mean a loss of public control, a loss of profits and a new tier of costly management…

From the Guardian.

Read more here.

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