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Interesting to see how the CWU react to this morning's announcement, 2% pay rise being paid from July and backdated from April with a lump sum payment.
Planning permission has been granted for the new parcel hub in the Midlands at the DRIFT site. Due to open in Summer 2023 with the capacity to process 60,000 parcels per hour. It will be RM's biggest site in the country.
Don't Panic - The announcement will cover the fact that a date has been set for formal talks with the CWU and they plan to have them concluded by the end of July. A joint statement has been issued with the CWU setting out the framework.
Stuart Simpson giving an update at 15:30 today
Ofcom will also be conducting a review of the USO later this year.
Stuart Simpson has today announced that Parcel Force and RM International will integrate more closely with Royal Mail, this will ensure that they have one integrated domestic and international parcels strategy and will allow the use of assets in a more integrated way, he says.
Scamp
Have a research of Making The Market, its a dark art !!
Once all 3 parcel automation sites are up and running then the majority 2C Outward parcels will be processed there, once processed it will despatched to the MC's for them to process the inward. That is the long term plan.
Three of these machines will have the more processing capacity than all of the current PSM's in total.
The contract to install the first parcel automation machine has been signed, the company is Beumer.
Oli - The appt has been made permanent today.
Stuart Simpson to take charge of Royal Mail Operations UK with immediate effect.
RMG Will outline a plan of action with the June Trading Statement.
SP Will probably tread water until then.
IMHO
This was one of my first investments many years ago and I lost most of that investment, however I learned a lot from it.
I look on this board occasionally and while the posters have changed the theme has not, NTOG always promises Jam tomorrow and always fails to deliver.
Oli - RM was generating most its profits in the past from letters, this income stream has been decreasing for a long time and the increase in parcels is not generating the same revenue and profits. The RNS in March forecast a significant loss for 2020/21 and now that loss is going to be a lot worse than forecast.
RM has not adapted to the decline in letters against the increase in parcels with a profitable strategy and this is a real worry for the long term future. RM has actually gained a lot more parcel related work due to COVID-19 and will continue to do so over the next couple of months. The increase in parcels is nothing new yet RM is failing to adapt quick enough and needs to do so to survive.
Revenue is down and costs are up, this is a terrible RNS.
No matter who is at the helm RM needs radical changes because the current business model is unsustainable.
Parcel volumes are up by over 50% and seem to be holding steady but what happens post COVID is unknown and difficult to forecast.
The recent changes in work plans at Sorting/Distribution sites has strangely improved efficiency and the distribution network has seen efficiency improvements of over 30%. Hi - level thinking in the business will be how can these improvements be maintained once the regulator expects normal service to be resumed.
JB - Yes Parcels, tracked,SD's to be delivered as normal on a Saturday. Parcel volumes last week were 50% up compared to this time last year and letters are down 20%.
The change has been agreed with the Government and the Regulator.
It may be in part due to RM handling COVID19 test kits which have to be at the lab sites within 48 hours and the non-delivering of letters enable all 1st Class/T24 parcels to be delivered on time. The next day delivery rate for T24 parcels is currently 84% and obviously only getting 84% of the test kits to the labs in time would not be acceptable.
RM to stop delivering letters on a Saturday from this week. Sensible cost cutting in the current climate.
RMG will try and invoke Agenda For Growth agreement from 2013 that has a section around dispute resolution procedures between Royal Mail and CWU that RMG say is legally binding and involves independent mediation. Moya has written to the CWU today informing them of this. Be interesting to see how this goes, at the moment if the CWU issues notice for industrial action they would want it before XMAS, if it is delayed until after XMAS then there position is not as strong. Looking at the perilous state of the CWU finances it is doubtful if they could sustain a long legal battle or further ballots etc.