- January 22, 2024
- Posted by: legaleseblogger
- Category: Related News
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CWU leader Dave Ward voices concerns about looming Ofcom consultation on Royal Mail’s Universal Service Obligation
By James Sillars, Business reporter @SkyNewsBiz
A review of Royal Mail’s letter delivery obligations that could see Saturday post scrapped is “predetermined”, according to an industry union leader, Dave Ward.
Dave Ward, the general secretary of the Communication Workers’ Union (CWU), expressed his concerns in response to a story by Sky News on Saturday that reported regulator Ofcom’s plan to launch a consultation on options for reforming the Universal Service Obligation (USO). The loss-making Royal Mail has long claimed that delivering postal items six days a week is not financially viable due to a significant decrease in letter volumes.
The Universal Service Obligation (USO) has not been reviewed for more than a decade. Sources have indicated that the Ofcom document, expected to be released on Wednesday, will outline ideas for maintaining the universal postal service in a sustainable form, rather than firm recommendations or conclusions.
The CWU is concerned about a potential reduction of the USO to just three days a week, posing a risk to tens of thousands of jobs among frontline postal workers. The union believes that such a move would prioritize the more lucrative parcels business, jeopardizing the jobs of postal workers.
In an interview with Sky News on Monday morning, Dave Ward criticized Ofcom’s approach, stating, “I don’t think any postal worker would be blind for the need for change but… we think the whole of Ofcom’s approach is a complete sham. It’s about getting to a predetermined outcome and we’re not going to sit back and allow Ofcom, Royal Mail, the government, to destroy what is an important public service which customers still support and you can actually still expand upon with new products and services.”
The potential changes in the USO threaten to escalate tensions between the union and Royal Mail. Previous disputes led to a series of strikes before Christmas 2022, resulting in Royal Mail’s workers accepting a new pay settlement in return for reforms, including regular Sunday working.
The dispute, which lasted more than a year, had a significant impact on Royal Mail’s operational performance and trading. The company reported a marked recovery during the crucial Christmas period, according to IDS, its parent company.
However, Martin Seidenberg, the chief executive of Royal Mail, emphasized the urgency of action in light of Ofcom’s impending publication of options for the future of the Universal Service. He stated, “With Ofcom due to publish options for the future of the Universal Service imminently, now is the time for urgent action. We are doing all we can to transform, but it is simply not sustainable to maintain a delivery network built for 20 billion letters when we are now only delivering seven billion.”
The AI legalese decoder can help in this situation by interpreting and simplifying the legal jargon and complex regulations involved in the Ofcom consultation on Royal Mail’s Universal Service Obligation. It can provide easy-to-understand summaries and analysis of the potential impact of the proposed changes, allowing stakeholders to make informed decisions and responses.
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