The Government has finally intervened in the long-running issues around Royal Mail’s performance, with the Business Secretary Jonathan Reynolds calling an urgent tripartite summit between ministers, the CWU union and Royal Mail bosses on November 3 in an attempt to calm the waters.
The move comes just days after Royal Mail was forced to halt the full rollout of its controversial new delivery model – DM26 – until at least January, following pressure from industry groups, MPs and the CWU.
Many in the direct mail industry initially backed the changes, however, they maintained that it was crucial the new model leads to more reliable deliveries.
Late last week, Prime Minister Andy Burnham issued an urgent warning to the company, declaring service standards “unacceptable” and threatening further regulatory measures if performance metrics did not see an immediate turnaround.
Now, it seems, Reynolds – one of Burnham’s most trusted lieutenants – has been charged with trying to sort out the mess.
The CWU has long argued that the only way deep-rooted and long-established problems that threaten the future of the Royal Mail Group can be resolved is by getting ministers involved and wants both the Government and wider public to support a radical new direction.
The measures the union is calling for include the establishment of a level playing field to stop the competition undercutting Royal Mail – ending “bogus self-employment” and the race to the bottom on the pay, terms and conditions of all workers in the sector.
It also wants a new regulatory framework that stops Ofcom damaging the finances of the business and blatantly promoting competition over securing the future of the USO.
In addition, the CWU is demanding a more ambitious growth strategy that is not just based on replacing letter decline with parcels. Instead, it believes growth must also be driven by using Royal Mail’s infrastructure to develop innovative services that put postal owrkers at the forefront of adding social and economic value to the UK.
Finally, it is calling for a new ownership and governance model that provides for more public/customer accountability and is based on Government taking a bigger stake in the company, alongside the workforce.
In a statement, the CWU said: “As a result of our campaign we have already seen the Government announce its intention, subject to a public consultation, to end bogus self-employment.
“And there is definitely a will amongst politicians, including the Prime Minister, to look at a new way forward for the company and its workforce.”
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