CWU Supports Call for Protection of Universal Service Obligation

21st June 2014

Responding to the announcement by Royal Mail on Friday 20th June 2014 that they have called on Ofcom to bring forward a review of the direct delivery market, Dave Ward, the deputy general secretary of the Communication Workers Union (CWU), said:

"Ofcom's primary duty is to protect the universal service which allows us to send a letter to Belfast, Bristol or Brighton all for the same price. If Ofcom does not carry out an immediate review of the impact of direct delivery on universal service, it will have failed in its duty.

"The ability of TNT to be able to choose when, where and what they deliver has a profound impact on the sustainability of the universal service. Not surprisingly, TNT is cherry-picking big city deliveries only, where profits are maximised.

“This is unfair competition with little benefit to customers or the British public. In a shrinking letters market having two posties following each other up the same garden path is inefficient.

“The government needs to wake up and realise the implications Ofcom's lack of action will have on Royal Mail's ability to deliver the universal service obligation. TNT is not introducing new jobs, they are just replacing decent and well-paid Royal Mail jobs with minimum wage employment and supporting the growth of a low-pay economy. In the end, workers everywhere will suffer through this race to the bottom."

See Royal Mail's submission at -
http://www.royalmailgroup.com/sites/default/files/Direct%20Delivery%20Submission_Final.pdf