Royal Mail privatisation... Would you?

custardy

Better_Days wrote: »

RM has been badly managed for years. In the good years when RM made money it was not reinvested by successive governments in the business and improving management. As others have pointed out the business would not have been saleable if pensions were included, so that responsibility has been taken out of the business. The government is already reneging on its promises to RM staff to maintain pension commitments. Other providers have been permitted to 'cherry pick' the most profitable aspects of the business.

The reason you are getting your post later in the day is not because your postman is working more slowly. It is because those postmen who started at say 4.30 am were paid a bit more than those who worked more sociable hours. To save money the early starts are being phased out.

RM has been 'prepared' for sale. Machinery and vehicles which would have otherwise been replaced have not been, so as to make the accounts look more healthy.

What may happen is that as with Yodel, delivery rounds are franchised. In the meantime it is likely there will be a two tier workforce, the 'old' RM staff and the 'new' staff probably on zero hours contracts. There is no way 6 day a week deliveries and delivery for the same cost across the country will continue. You will probably be able to hold your breath in the time it takes whoever buys RM to start lobbying govt to change the law governing this until 2022. I would not be surprised if some EU directive was dug up to support overturning the law.

You only have to look at how much privatisation of other public services has benefited the consumer to see how this will turn out.

I have a friend from South Africa. When she first came here she couldn't understand why we would send important documents through the post. Over there so much gets stolen or mislaid no-one bothers. But it is a great inconvenience, especially for those in rural areas, to personally visit banks, passport agencies, solicitors etc. And you can forget about internet shopping.

Currently postmen and ladies get paid about £19k pa. After tax and NI etc take home is about £1,000 a month. I wonder how much services will improve when the purchaser of RM seeks to save money by cutting pay in a race to the bottom. But will the taxpayer then be picking up the bill for tax credits?

michaels wrote: »

19k gross is about 15,453 net. Are the rest of your 'facts' this accurate?

Which ones are you querying?

custardy

mike88 wrote: »

Parcelforce is the trading name of Royal Mail Ltd and is an integral part of the privatisation. As there is no competition worth much in the letters market the competitors are the firms I mentioned in the expanding parcel delivery business. Surely you can see that?

Its a part of RM group
The very fact there isnt much competition has been one of the weights round RM (letters) neck under DSA
Parcelforce is a no brainer.
however the consumer can already choose any courier they wish
Whats your answer for the letters business?
replace RM letters with RM non state owned and keep it like it is now?

mike88

custardy wrote: »

Its a part of RM group
The very fact there isnt much competition has been one of the weights round RM (letters) neck under DSA
Parcelforce is a no brainer.
however the consumer can already choose any courier they wish
Whats your answer for the letters business?
replace RM letters with RM non state owned and keep it like it is now?

On the letters business there is very little scope to increase earnings - that's my point. On Parcelforce I have already stated they are in competition with others but that their scope for growing the business might be held back by potentially higher costs than their competitors.

I remain unconvinced by this privatisation.

grey_gym_sock

on the letters business, further decline in volumes is expected. they'll do what they can to keep it profitable by cutting costs; if/when that fails, they'll ask the regulator to let them increase prices (again). the regulator's top priority is maintaining the universal service, so they'll say yes.

so profits from letters will be limited, but i don't see how it can all fall apart.

custardy

mike88 wrote: »

On the letters business there is very little scope to increase earnings - that's my point. On Parcelforce I have already stated they are in competition with others but that their scope for growing the business might be held back by potentially higher costs than their competitors.

I remain unconvinced by this privatisation.

You are talking about RMs hindrance since the market was opened up
There is no competition,only leaches
The fact is as part of the EU,The UK is required to offer a basic letters service
Parcelforce isnt held back by that now.

Loughton_Monkey

Better_Days wrote: »

.....

Currently postmen and ladies get paid about £19k pa. After tax and NI etc take home is about £1,000 a month. I wonder how much services will improve when the purchaser of RM seeks to save money by cutting pay in a race to the bottom. But will the taxpayer then be picking up the bill for tax credits?

How does this gel with a starting salary for an 18 year old being £17,846? Are you saying that increments will only every increas this by £1,000 or two?

custardy

Loughton_Monkey wrote: »

How does this gel with a starting salary for an 18 year old being £17,846? Are you saying that increments will only every increas this by £1,000 or two?

The wage increases at 6 & 12 months from memory.then that's the postie on the full 19k ish wage.excepting London loading

Loughton_Monkey

custardy wrote: »

The wage increases at 6 & 12 months from memory.then that's the postie on the full 19k ish wage.excepting London loading

Then someone speak with forked tongue:

http://www.payscale.com/research/UK/Employer=The_Royal_Mail/Salary/Job/Postman

Average Salary For Postman at The Royal Mail:

Salary £15,046 - £32,596
Bonus £6.81 - £280.49
Total Pay £13,705 - £30,559

MEDIAN: £21,765

atush

Doshwaster wrote: »

Parcelforce really is where the investment is needed. There's the potential there for a true global business to take on the like of DHL, UPS and FedEx in the international logistics market.

I agree, Parcel force could be the growth area, esp if they get their pricing right (re 'protected areas') as these are the places you have less retail presence so more possible growth potential in an underserved area.

grizzly1911

Loughton_Monkey wrote: »

Then someone speak with forked tongue:

http://www.payscale.com/research/UK/Employer=The_Royal_Mail/Salary/Job/Postman

Average Salary For Postman at The Royal Mail:

Salary £15,046 - £32,596
Bonus £6.81 - £280.49
Total Pay £13,705 - £30,559

MEDIAN: £21,765

It will be ineteresting to see.

Outside London I would be surprised to see a postie on £32k (everything else down there is nuts so possible). No doubt some of their operational management are on those figures but I wouldn't class them as posties.

http://www.payscale.com/salaries/feb479c1/Postman-UK-Salary

£13,217 - £24,921