Archive

Posts Tagged ‘downstream access’

Third-Class Post

December 21, 2017 Leave a comment
Junk-mail-007

‘The Royal Mail delivers its rivals’ mail’ Photograph: Getty Images

Today is the last day for sending first-class post if you want it to arrive before Christmas. You’re lucky there’s anyone to deliver it. In October, the Communication Workers Union held a ballot which came out overwhelmingly in support of strike action – 89.1 per cent in favour on a turnout of 73.7 per cent – but the Royal Mail got a High Court injunction to stop the strike.

If you believe Royal Mail, letter volumes have declined by 40 per cent in the last ten years as people have increasingly taken to email. But there doesn’t seem to be any noticeable loss from where postal workers are standing. In fact, volumes are as high as they’ve ever been. It’s true that people don’t write so many personal letters any more – that was always a minority interest anyway – but the loss of personal mail has been more than compensated for by a marked increase in advertising mail. I’m sure you’ve noticed it too.

It’s a joke in the office. ‘Figures are down,’ we say, while loading all those extra bags into the back of the van. And it’s here we see a really strange thing in the conduct of the postal industry in the UK. There are just as many letters as there were before privatisation, but many of them are now ‘handled’ by rival mail companies like UK Mail and TNT, who, while they take the profit for handling it, don’t actually deliver it. We deliver it. Yes, that’s right: the Royal Mail delivers its rivals’ mail. Management tells us that if we go on strike it will strengthen our rivals, but without us, our rivals can’t exist.

The rival mail companies are allowed to use Royal Mail staff and equipment to deliver their post, through a process called ‘downstream access’; at the same time, none of them is hampered by the Universal Service Obligation, which requires the Royal Mail to deliver to every household in the country, no matter how remote.

Meanwhile, the privatised Royal Mail is now under an obligation to increase profits to pass on to shareholders. What this means is that there is growing pressure to cut costs, to deliver the same amount of mail using fewer staff.

The way they achieve this is through a process called ‘lapsing’. What they do is to break down two or three rounds in the office into their constituent parts – they ‘collapse’ the frames – thus saving on the wages of the workers who would otherwise have delivered those rounds. They then hand the extra bundles on to the rest of us to deliver.

Which is fine on a light day, but these days we lapse almost every day; and because of the pressure to cut costs there is no longer any spare capacity in the office. There aren’t enough staff, and if something unexpected happens, like one or two people going off sick, or a surge of mail, there isn’t the man-power to cope. This is when mail gets left behind. This is when third-class mail is given priority over first-class.

Which is what happened recently. There was a last-minute surge of mail, including a significant quantity of first class letters. Well, I say ‘last-minute’. It was last-minute as far as delivery staff were concerned, but the management, who brought it in from the lorries, and the people who run the sorting machines, must have known it was there all along.

There were howls of protest from the staff. How are we going to sort and deliver this, and take out the lapsed mail?

That’s when I heard something I’d never heard before in all my years as a postman: instead of dropping the lapsed mail, some of which was just the third-class advertising junk known as Mailsort, we were told to leave the first-class mail under our desks.

You may ask why they did this. And the answer is: I have no idea. But I can take an educated guess. It was about saving money. They didn’t have anyone to take out the lapsed mail, so, rather than bring in casual workers, which would have cost them, they decided to delay the first-class mail instead.

None of this happened when we were publicly owned. First-class mail was always given priority, and most postal workers were willing to go into overtime to get it delivered. Not any more.

https://www.lrb.co.uk/blog/2017/12/21/roy-mayall/third-class-post/

Advertisements

Ofcom offers little hope to Royal Mail

October 30, 2011 Leave a comment

Under Ofcom’s proposals, ‘Royal Mail has a monopoly of the work, while other companies get a share of the profits’. Photograph: Adrian Dennis/AFP/Getty Images

Royal Mail has a new regulator, but its proposals fail to protect the service from privatisation and unfair competition

From the Guardian, Comment is free

Friday 28 October 2011 08.00 BST

The Royal Mail now has a new regulator, Ofcom, which took over the role from Postcomm on 1 October. Ofcom has already issued a report in which a number of changes are proposed. There is a public consultation under way, which closes on 5 January 2012.

The most contentious of the proposals is the one to lift the cap on what the Royal Mail can charge for its principal service. According to some reports this could mean the price of a first-class stamp going up to £1. Less well recognised, but equally important, is the proposal to lift the cap on the price of bulk mail and business mail, which could also have an impact on customers further down the line.

The move to Ofcom follows on from proposals made in the Hooper report, which has been the basis of policy for successive governments since it was first published in 2008. It was updated at the request of the current government in 2010.

Hooper makes a number of recommendations, of which the change of regulators is just one. Other recommendations include the introduction of private capital through a “strategic partnership with a company with corporate experience of modernisation” – privatisation – and the removal of the pension deficit to the public purse, thus lifting the burden from any future buyer. In March 2010 the deficit stood at £8bn. Hooper states that his proposals must be taken as a package, which implies that privatisation is not far off.

The stated aim of both the Hooper report and the Ofcom proposals is the protection of the Universal Service Obligation (USO) by which the Royal Mail is required to collect and deliver letters six days a week at an affordable and uniform price across the UK. None of the other mail companies has this obligation. It is interesting to note that these proposals come on the eve of privatisation. They allow any future buyer the freedom, not allowed to the Royal Mail for the past few years, to set a price in line with actual costs.

Meanwhile Ofcom also offers safeguards to protect vulnerable consumers from onerous price rises by placing a cap on the price of second-class stamps of between 45-55p. It also, very significantly, promises “to require Royal Mail to continue to provide competitors with access to its delivery network”.

It’s at this point that we enter the bizarre world of “downstream access”. Hooper explains the term in his report, in a footnote on page 12:

“Royal Mail delivers 99% of all letters downstream. Royal Mail is required by the regulator … under the terms of its licence to deliver letters for competitors who collect and sort upstream in competition with Royal Mail. This is called the access regime or downstream access regime. Competition in physical mail happens upstream whereas downstream delivery of physical mail has the characteristics of a monopoly.”

Do you get that folks? “Competition in physical mail” – that is competition for profits – “happens upstream”, while “downstream delivery of physical mail” – that is, the actual work – “has the characteristics of a monopoly”. Royal Mail has a monopoly of the work, while the other companies get a share of the profits. And you wonder why the USO is under threat?

The Ofcom proposals continue: “Royal Mail would have the freedom to set the ‘wholesale price’ for access to its network but would be subject to rules regarding the allowed margin between the wholesale and retail prices. This would help ensure that efficient competitors can compete effectively with Royal Mail.” This is known in the business as “headroom”. It is the difference between what the Royal Mail is allowed to charge, and what the “competitors” – who don’t, in any recognisable sense of the word, actually compete – require in order to continue to generate profits for themselves.

Ofcom makes a sort of nod of recognition to the absurdity of the situation when it promises, in the next sentence, “to assess on a case-by-case basis any interest in providing so-called ‘end-to-end competition’ in the UK, where a postal operator receives the letter and delivers to an address without using Royal Mail’s network.” It is interesting to speculate what this might mean. Are we going to see rival pillar boxes on our street corners, and rival posties with different coloured uniforms vying with each other to get to the letter box first? Will there be a kind of postal workers’ turf-war going on, in which I meet my rival at the gate and have to fight him off for access to your letter box?

Of course not. The rival companies will only consider an end-to-end service if there is profit to be made, which means they won’t be in the slightest bit interested in the USO. If such a thing happens at all it will be delivery within one city, or between cities, no more. Rural and remote areas of Britain will never be graced by any but the Royal Mail’s characteristic uniform. Whatever else happens, the Universal Service Obligation will remain the obligation of one company alone. Which is the reason why the Royal Mail will always remain a special case.

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.

Read more here.

Yanis Varoufakis

THOUGHTS FOR THE POST-2008 WORLD

Yorkley Court Community Farm

Sustainable Agriculture in the Forest of Dean

Ian Bone

Anarchist in the UK

Opinion | The Guardian

Occasional thoughts from an overworked postie

LRB blog

Occasional thoughts from an overworked postie

AAV

Occasional thoughts from an overworked postie

[needs a title]

Help me out with a title!

sicknote

celebrate your wrong bits

Conflicts by Ari Rusila

- [aka ex-BalkanBlog] - ISSN 2342-6675 - Conflicts , Balkans, Black Sea region, MidEast, EurAsia

London Love

My city, my home, my beloved...

The Big Hand

Publishing the Unpublishable from Next February

Think Left

The purpose of Think Left is to present a view of politics from a left-wing perspective.

WordPress.com

WordPress.com is the best place for your personal blog or business site.