Business

Sunak rules out three-day letter deliveries in clash over Royal Mail

Dave Ward, common secretary of the CWU, described the deliberate modifications as a “deliberate, manufactured destruction of the postal service”.

He additionally took intention at Ofcom for failing to take the union’s views into consideration, including that the regulator had “no credibility whatsoever”.

Industries reliant on weekend deliveries, together with greeting card makers and journal publishers, have additionally hit out on the plans.

Royal Mail has been campaigning for an overhaul to rules as a pointy decline in letter sending piles stress on its funds.

The firm has argued that it isn’t sustainable to take care of a supply community that was constructed for 20bn letters yearly when it’s now solely delivering 7bn. This is anticipated to drop to 4bn inside 5 years.

Mr Seidenberg has warned Royal Mail, which was privatised in 2013 beneath the coalition authorities, might even want a taxpayer bailout to remain afloat.

The firm, which was additionally left reeling by strikes after a row with unions over pay, posted a £319m loss in the primary half of its monetary 12 months, a rise of £100m in comparison with the identical interval in 2022.

Meanwhile, its high quality of service has deteriorated sharply.

Royal Mail paid out £26m in compensation to clients final 12 months amid rising complaints, whereas in November it was hit with a report £5.6m positive after it did not ship greater than 1 / 4 of first-class put up on time.

However, the corporate final week hailed its greatest Christmas in 4 years after a “marked improvement” in the final three months of the 12 months.

Royal Mail right this moment additionally stated it can retain the cap on second class stamp costs.

This means the worth of a second class stamp, at the moment 75p, can not rise by greater than inflation.

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