Royal Mail Proposes to End Six-Day-a-Week Letter Deliveries
Royal Mail has submitted proposals to postal regulator Ofcom, outlining plans to discontinue six-day-a-week letter deliveries. This move could result in the loss of up to 17,800 jobs at the national carrier.
This proposal is part of a larger trend affecting postal and logistics workers worldwide, including those at Amazon, UPS, and the US Postal Service. Companies are leveraging new technology to reduce their workforce and cut costs.
Communication Workers Union Offers Cost-Saving Measures
In response to Royal Mail’s proposal, officials from the Communication Workers Union (CWU) have suggested their own cost-saving measures. These include implementing a five-day mail service, slower speeds for second-class mail, and expanding the parcel network.
Background: Universal Service Obligation (USO)
Royal Mail’s submission to Ofcom was made in response to the regulator’s “call for input” on the future of the Universal Service Obligation (USO). The USO ensures mail delivery Monday-Saturday to all 32 million households in the UK, with uniform pricing for different classes of mail regardless of destination.
However, Ofcom has expressed concerns about the financial burden of maintaining a six-day mail service for Royal Mail. In a report published in January titled “The future of the universal postal service,” Ofcom suggested scaling back and potentially ending the USO.
Royal Mail’s Perspective
Royal Mail’s submission argues that the USO is unsustainable and highlights the significant costs associated with providing this service. The company claims to spend £1-2 million per day on the USO, raising questions about whether it should continue to bear this expense.
To address these concerns, Royal Mail proposes delivering non-First Class letters on alternate weekdays, effectively reducing the USO to a three-day-a-week service. Additionally, delivery speeds for standard bulk mail would be slowed, taking three weekdays instead of two to reach recipients.
Potential Job Losses
Implementing these changes would result in a significant reduction in delivery routes, leading to an estimated loss of 7,000-9,000 jobs. While Royal Mail claims there will be no compulsory redundancies, the Communication Workers Union estimates that between 13,700 and 17,800 jobs could be lost, with frontline positions being particularly affected.
Impact and Concerns
Royal Mail’s proposals have raised concerns about the potential consequences. There have already been instances of missed hospital appointments and life-saving surgeries due to delays in mail delivery, which could worsen under the proposed changes.
Various organizations, including the National Health Service (NHS) and Citizens Advice, have highlighted the negative impact on individuals who rely on timely mail delivery for medical appointments, court notices, and welfare benefits decisions.
Ofcom’s Role and Royal Mail’s Demands
While Ofcom is responsible for overseeing the USO, critics argue that it has allowed Royal Mail to neglect its obligations. Ofcom’s previous fine of £5.6 million for mail delivery targets being missed has been seen as insufficient punishment.
Royal Mail justifies its proposed changes by emphasizing the need to adapt to changing customer behaviors. However, there is no public support for reduced mail deliveries or the planned price hikes for First Class mail.
In addition to its proposals, Royal Mail demands that the government grant Ofcom greater powers to drive cost efficiencies and further reduce the USO. It suggests that if additional reforms are necessary, the government should contribute to the associated costs.
Communication Workers Union’s Response
The Communication Workers Union has rejected Royal Mail’s plans for a three-day USO but acknowledges the market-driven framework set by the company. The union proposes a five-day USO for letters if it is accompanied by a seven-day parcel service.
The CWU is open to changing the speed of delivery for certain products as long as First Class mail continues to be delivered across six days. It also suggests expanding the role of postal workers in delivering new social and commercial products and services.
The CWU’s submission indicates its alignment with the company’s perspective and calls for an industry fund with contributions from parcel companies like Amazon to subsidize the USO. However, critics argue that expecting Amazon to contribute to such a fund is unrealistic given the company’s tax practices.
The CWU also expresses support for the Labour Party’s regulatory review of the sector and its aim to improve the existing regulatory regime.
Conclusion: Rank-and-File Rebellion
To challenge Royal Mail’s proposed changes, a rank-and-file rebellion must be organized. The Postal Workers Rank-and-File Committee has scheduled an online meeting on Sunday, April 28, at 7pm. Interested individuals can register to attend and help spread the word.
SDGs, Targets, and Indicators Analysis
1. Which SDGs are addressed or connected to the issues highlighted in the article?
- SDG 8: Decent Work and Economic Growth
- SDG 9: Industry, Innovation, and Infrastructure
- SDG 10: Reduced Inequalities
- SDG 16: Peace, Justice, and Strong Institutions
The issues highlighted in the article are connected to these SDGs because they involve job cuts, the impact of technology on the workforce, inequality in the postal and logistics sector, and the role of regulatory institutions.
2. What specific targets under those SDGs can be identified based on the article’s content?
- Target 8.5: By 2030, achieve full and productive employment and decent work for all women and men, including for young people and persons with disabilities.
- Target 9.2: Promote inclusive and sustainable industrialization and, by 2030, significantly raise industry’s share of employment and gross domestic product.
- Target 10.4: Adopt policies, especially fiscal, wage, and social protection policies, and progressively achieve greater equality.
- Target 16.6: Develop effective, accountable, and transparent institutions at all levels.
The article’s content relates to these targets as it discusses job cuts in the postal sector, the impact of technology on employment, inequality in the industry, and the role of regulatory institutions like Ofcom.
3. Are there any indicators mentioned or implied in the article that can be used to measure progress towards the identified targets?
- Indicator 8.5.1: Average hourly earnings of female and male employees, by occupation, age group, and persons with disabilities.
- Indicator 9.2.1: Manufacturing value added as a proportion of GDP and per capita.
- Indicator 10.4.1: Labour share of GDP, comprising wages and social protection transfers.
- Indicator 16.6.1: Primary government expenditures as a proportion of original approved budget, by sector (or by budget codes or similar).
The article does not explicitly mention these indicators, but they can be used to measure progress towards the identified targets. For example, average hourly earnings can indicate the level of decent work and equality, manufacturing value added can show the contribution of the industry to employment and GDP, labour share of GDP can reflect income distribution, and primary government expenditures can indicate the effectiveness and transparency of institutions.
Table: SDGs, Targets, and Indicators
| SDGs | Targets | Indicators |
|---|---|---|
| SDG 8: Decent Work and Economic Growth | Target 8.5: By 2030, achieve full and productive employment and decent work for all women and men, including for young people and persons with disabilities. | Indicator 8.5.1: Average hourly earnings of female and male employees, by occupation, age group, and persons with disabilities. |
| SDG 9: Industry, Innovation, and Infrastructure | Target 9.2: Promote inclusive and sustainable industrialization and, by 2030, significantly raise industry’s share of employment and gross domestic product. | Indicator 9.2.1: Manufacturing value added as a proportion of GDP and per capita. |
| SDG 10: Reduced Inequalities | Target 10.4: Adopt policies, especially fiscal, wage, and social protection policies, and progressively achieve greater equality. | Indicator 10.4.1: Labour share of GDP, comprising wages and social protection transfers. |
| SDG 16: Peace, Justice, and Strong Institutions | Target 16.6: Develop effective, accountable, and transparent institutions at all levels. | Indicator 16.6.1: Primary government expenditures as a proportion of original approved budget, by sector (or by budget codes or similar). |
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Source: wsws.org
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