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CWU calls for Royal Mail to prioritise growth after decent results

May 22 2015

The CWU has described the Royal Mail’s annual results as “decent” whilst calling on the company to work harder at delivering growth.

Despite the challenges of regulation, competition and a declining letters market, the results reflect the efforts of postal workers who have continued to improve productivity (up by 2.5 per cent) often in very difficult circumstances.

CWU general secretary-elect Dave Ward said that the results show Royal Mail can go forward in good shape.

“These results have been delivered by improving productivity and the hard of work of postal workers. Those workers have shown they have supported the need to change to build growth in the business,” he said.

“I am today calling on Royal Mail to show they have the same drive and commitment for growth and innovation and call on them to work with CWU to deliver it.”

Speaking on the decline in the letters market, Dave added: “However, we also recognise the note of caution that that there remains a structural decline in the letters market of 4 per cent. Therefore, the union again calls on the regulator Ofcom, to recognise this clear fact and to stop blindly increasing the competition in the sector.

“The recent announcement by Whistle that they have discontinued their delivery operation is a clear sign of the overcrowded postal market; and jobs will continue to be lost if the regulator fails to change its approach.

“Ofcom’s approach to competition is a continuous threat to jobs, as well as to terms and conditions as they push for a race to the bottom.

“Ofcom has also failed to understand the impact of unfair competition on the universal service obligation (USO) and we would remind them again, safeguarding the USO is their primary obligation.”

For more information read the report produced by the CWU Research department: Royal Mail full year results 2014/15.