Member Info for simx

Isle, is the next one when they choose trike dates?

Thompson has his work cut out to turn this around

citadels short position increased by .14% to .52% on 15th July, DK's latest investment in RM crossed reporting threshold on 14th July. I doubt this is coincidence.

JP do you think the ballot result be announced during trading?

Whilst DK has been buying this latest tranche of shares won't he have been countering the shorts attempts to lower the sp?
If his buying is now over this may now leave the door open for them.

Thanks JB, Dk's voting rights gone up by 1% to 22%, is approximately another 10m shares bought?

completely agree Angersharrkz, real time sp is 271.6, drop of 5.6p in opening half hour,big drop considering ranges it has traded in recently. Reported shorts (the ones we know about) are up, Q1 out tomorrow (have the big players got a heads up?), CWU strike ballot result today. Certainly conditions for turbulence and thus far market is responding.

Ollie I interpret that as :RM are too far ahead of their competitors because they provide the USO; they need to be temporarily hamstrung until their competitors catch up.
Ofcom justify their partiality to the competition with an implication that the playing field is tilted in RM's favour, that the USO is some bounty of benefits for RM. Due to this we aren't allowed to deploy a product which we have already developed. As Ofcom say, competition is a great thing to encourage, by definition it involves one gaining an advantage over another and then using that advantage to their and the postal users benefit. Unless it is RM .I cannot see the logic, or rationale in ofcom's reasoning or conclusions.

That would be my interpretation JB. The Universal service is a burden to RM, and a gift to our competitors who dump their mail onto us to deliver the very expensive last mile, where the majority of the workforce is employed. RM come up with a great idea, offer tracking on every product even 2nd class letters. This is really useful to us the public, keeping tabs on their letters and letting them see that yes, stamp prices did go up a few months ago, but there has been a tangible improvement in what is offered. Win Win.
For free tracking to be blocked is absurd; Ofcom fine us £50mfor poor service, and at the same time, penalise us for trying to make enhancements to quality... and all in the name of the universal service obligation . Is there a thing in business law that says you can't improve your product, make it better than your rivals product, and continue to sell it at the old price?

Arsenal, I know who you're talking about, but UNITE have also been intertwined. However, that's turned out to be a damp squib, sp didn't move. CWU are clearly the ones who could/will upset the applecart. Do you think the official announcement of a positive IA ballot result will affect the sp?

So is that it with UNITE then? Apart from us not knowing what it took for UNITE to halt IA. And the news is nothing happened!

I believe there is a press conference at 4pm and result will be announced during the conference.

Angersharkz, Is this recent news?

Sextuple quotes. Really?

Isle, Q1 results out 20th July which will give an idea how things are going for Royal Mail Group. Regarding the Royal Mail part of the group, no I'm not talking about a profit after paying shareholders, I'm talking about the money left at the end of the year after all costs including staff wages are met. If 9% pay rise is given this may wipe out any profits, some of which, as part owner's of the company, shareholders would hope to receive. I'm excluding profits created by GLS because if that were used to subsidise a pay rise at RM that would mean Royal Mail workers profiting off the backs of GLS workers. I know, shareholders profit off the backs of Royal Mail workers, but that is an accepted norm of the economic system currently prevailing in our country.

AS, the next few weeks/months are going to be fascinating, and currently everything written on this board re. how the CWU dispute will pan out, is speculation fed by bits and pieces of news interpreted by the readers. One thing that can't be disputed is how far apart the opposing positions are suggesting a resolution won't be easily attained.

AngerSharkz, i think Thomson is probably talking about wages, pensions and other benefits when he talks about the costs of labour, and I should have written 29-40% more expensive, but still a disparity which significantly affects rm's competitiveness and which must be tackled by working more efficiently. I don't believe he wants a strike, but there are many examples from the past of businesses declining because unions believed they were immune from fundamental economics. i.e. if the business isn't making a profit then wage demands can't be met, and a 9% pay rise would push us into that position; £40m x 9% = £360m. Revenues are likely declining with the covid boost over, and general economic conditions stifling consumer demand. Due to inflation the value of parcels may be increasing, but volume is declining and it is units posted which make RM money. The CWU demand a fair pay rise, but life is not fair, the economy is not fair, just a reflection of the truth. I do believe that Thomson sees this as THE moment that it has to be sorted out and will dig his heels in, a moment in time that will determine the future of RM. CWU and management are poles apart and I'm anticipating a very ugly dispute unless CWU make serious concessions on labour flexibility, in return for which they may get 6% wage increase.
No one has yet posted the terms of the new offer to UNITE, but I'm sensing that Thomson views the CWU as a very different animal and will negotiate accordingly.

AS, Thompson's perspective is that working practices must change to reflect that RMG's focus and operating structure must follow what customers want, and the emphasis is parcels. Hard to disagree because the changes in demand, parcels v letters, are clear and unarguable facts, and a successful business must have the freedom to adapt and accommodate these changes. Without significant change RMG's future will be under threat because competitors are far more nimble and have far lower costs, with their labour costs being up to 40% cheaper. This is a pretty stark figure, a disparity which he believes can be offset by restructuring targeted at the growing parcel business, rather than declining letters.
More than anything this article gives additional insight into what Thompson's vision is for the future, and his absolute commitment to achieving it. CWU should be careful what they wish for, and how they go about protecting their members. An inflation based pay rise will wipe out royal mails side of the groups profits, forcing prices up and further reducing their competitiveness, an obsolete business model that just consumes itself and has no winners. Thompson witnessed the miners strike, and is well aware that the only union man who did well out of it was Scargill, who still resides in his London apartment paid for by the NUM.

Telegraph article without signing in:
https://www.msn.com/en-gb/money/other/royal-mail-union-offered-c2-a32850-a-week-for-staff-to-push-one-button/ar-AAZDZ0H?fromMaestro=true
Article makes Simon Thompson's views clear on why changes in working practices need to happen. He seems absolutely committed to these changes and ready to fight for them. CWU appear to be equally committed to their position. My conclusion is that a quick negotiated agreement won't happen and strike is guaranteed.

https://www.msn.com/en-gb/money/other/royal-mail-union-offered-c2-a32850-a-week-for-staff-to-push-one-button/ar-AAZDZ0H?fromMaestro=true