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Oli, I can't wait for the Christmas trading update. RM will be coining it in. In my sector sick levels are now running at around 5%, compared to 8%this time last year. We've less staff, no one wants to work overtime so we're effectively only delivering mail 5 days (or less)
As you pointed out yesterday the new Xmas bonus scheme won't be achievable,saving RM in the region of Ā£500/head!
The Xmas bells must be ringing merrily at RM HQ!
Can't wait for the bumper divi to kick inš
JB, I can only go by our sector. We have reduced our absence levels to just on 5%. From 8% this time last year. The average absence for the UK as a whole is around 2.5%, and as being a postie is a physical outdoor job it's not expected to get down to anywhere near those levels.
It's worth remembering that RM agreed to revert to the old sick pay policy if and when the absence rates overall reach around 5.5%,as outlined in Paragraph 6.4.1 of the new agreement.
Still a way to go nationally but going in the right direction.
The bigger problem of improving the recruitment and retainment is another issue altogether!!!
Tate,
'Even after adjusting Royal Mailās performance for the impact of industrial action, extreme weather and the Stansted runway closure, its First and Second Class performance was still only 82% and 95.5% respectively.[2]
This means that Royal Mail breached its obligations by failing to meet its targets by a significant and unexplained margin.'
Not militant workers, not sick absences, not workshy employees, but something 'significant' & 'unexplained'
What could that possibly be???
Nothing to do with streaming mail,and prioritizing parcels?
If RM are blatantly lying about this to Ofcom and they swallow it, that means two things.
Ofcom are unfit to regulate and what else are RM lying about in this update? No wonder the market seems very downbeat on this share!
Tate, Yep the business obviously suffered due to period of industrial action, but why are offices still failing massively now that sick absences are more inline with industry averages? Why did Ofcom swallow the blatant lie that there is no streaming of mail to prioritize parcels, when virtually every office in the country does it?Why, despite the number of vacant positions,can't RM attract and retain quality job seekers? Until these questions are answered and addressed the QoS will still be woeful.
Like it or not, the final mile delivery is very labour intensive, with no changes to the USO likely in my opinion within the next Parliament,what are IDS going to do? Looks like the GLS cross sub will need to carry on for a little while longer lol
The GLS workforce is employed under gig economy terms and in most EU countries it's undertaken by predominantly migrant labour.
I'm not sure this is a business model that would be acceptable to this government or the incoming labour one if the USO is to be relaxed?
JBT, in answer to your question, are we recruiting?
We have currently 8 vacancies out an office of 40.
4 have been left to lapse since the revision and go out sporadically. The other 4 became vacant when the duty holders left mid September. We've had 6 new starts and 4 lasted a week,1 of the remaining 2 has given in their notice to take a job driving for DPD, he says on better money! So we're heading into Christmas with these unfilled vacancies and the expectation that lapsing will continue. We've been promised 4 agency starting next week but going by their track record they'll be used as cannon fodder and we'll be lucky they survive the week. Like I said it's a shambles really for one of the largest private employers in the country!
JBT, absolutely it's about recruitment and retention. The blame for this lies squarely at the door of the current senior management. The handing out of voluntary redundancies,the botched revisions taking out duties and not recruiting has led to, in some offices, an intolerable workload, where the duty holder hasn't got a cat in hells chance of completing. Add to this the new contracts of employment for new recruits and it's obvious to a blind man and his dog why retention is so poor. Why would you want to work in that environment, when like others have said,you can get similar pay for less hassle at Tesco.
People left in their droves after they became eligible for the back pay and golden carrots robbed from the defunct pension funds. RM have been slow in resolving this and in my opinion have left it too late,meaning this run up to Christmas is only going to see a worsening in the QoS. Senior management can't keep banging on about absenteeism and the industrial action, that was done and dusted 10 months ago. They need to take some responsibility and get to grips with recruitment and retention.If that means having to make the job more attractive to potential applicants, then so be it!
Why canāt high absenteeism be used as an excuse?
Reserves are supposed to cover days off, annual leave and to a certain extent absence.
A lot of reserves are on part time contracts of 20/25hrs and with no fixed days off are expected to flex up to cover for short term absence. In many cases they are given short term full time contracts to cover for long term absences.
The problem is that as more and more leave the business and the reserves are used to cover the shortfalls there's no cover for what they are supposed to do. That's why we have people working their days off as they don't want to come back to two days mail. That's why when someone takes a weeks annual leave,in my office the mail is left and just the tracked and priorities go out.
It's a shambles really. There's no way the company is going to grow long term or have any chance in getting a sympathetic ear to relax the USO until the QoS is improved.
"Iām just telling you what the independent regulator said. What the company stated in their financial reports."....... TMS
With regards to the way companies word their statements, I think they are very careful about their wording as often times they are treading on very thin ice. They way in which we (the investors) interpret these statements and figures is what creates a market I suppose?
Oli, I understood that when RM and POC had a proper business relationship that RM callers offices were restricted in what services they could offer. Now that relationship has been severed wouldn't it be a good opportunity to offer a full service on sending parcels,buying postage etc. After all it would save RM on having to send out multiple vehicles daily, if customers took their parcels direct to the delivery office.
Very Short sighted of RM to allow the exclusivity arrangement to end in 2020.
Once that was gone,it was on the cards that RMs share of parcels sent from POs was going to be targeted by the competition.
I'm not buying Newds conspiracy theory as both DPD and Evri sent out press releases in September that their relationship with the PO was only going to deepen. It was obvious to all what the end game was, especially as RM gave up without a fight!