Christine Buckley, Industrial Editor
Enter our Snapshots of Summer photography competition
Up to one third of postal workers are likely to lose their jobs in the biggest swathe of cuts in the history of the Royal Mail, unions have been warned.
The cuts will follow increased automation and an overhaul of the way the business operates as it struggles to combat growing competition.
Royal Mail has said that the changes over the next four to five years will need efficiencies or job losses of 30 per cent of its full-time workforce in the letters division. With 160,000 people employed in Royal Mail letters, that means 48,000 job losses, well in excess of the 30,000 in the last round of redundancies that began five years ago.
Royal Mail has outlined its bleak vision of the future for jobs as it also tries to push through £300 million in cost cuts by the end of this year. The immediate cuts, which could also trigger job losses, have been caused because the postal group is expected to fall short of revenues for the business plan it agreed with the Government by that amount. It had to agree to stick to the plan to win a £3.9 billion bailout by the Government.
Royal Mail has also told unions that four mail centres are likely to close because of the loss of business to competitors in the mail market. Unions fear that the number of closures will be greater.
Ian Griffiths, managing director of Royal Mail letters, quit after saying that the short-term cuts were unachievable. He walked out after only a year in the job and two years after his predecessor quit within 18 months of taking the position.
Royal Mail and the Communication Workers Union, the main postal union, are in talks over pay and the restructuring of the business. Royal Mail is also discussing the closure of the final salary pension scheme to new members with Amicus.
Paul Reuter, Amicus national officer, said: “There will be potential job losses because Royal Mail is not winning business. It is only by winning new business that Royal Mail will be saved, not by cutting back on staff.”
Royal Mail said: “In an increasingly competitive market we are of course testing new, more efficient ways of working including greater automation. Until we have done this we cannot confirm the impact on jobs.”
Win a luxury weekend to Newcastle and its neighbour Gateshead, find out more here
Risk, resilience and embracing new technology
Industry sectors news at a glance. Interactive heatmap, video and podcast
Discover the power of collective thinking. Submit a solution and be in with a chance to win a Media Hub Home Entertainment System
The inside track on current trends in the charity, not for profit and social enterprise sectors
Everything the Business Traveller needs to know to make a better trip
Make the most of the summer and enter our fabulous photographic competition, you could win a £5000 holiday
Corsica is an island of beauty and contrast, an ideal holiday destination
Enjoy further reading from Travel to Fashion, Business to Sport, discover more
Shortcuts to help you find sections and articles
The clever way to lease a new car is with Car leasing made simple™
2009
per month on 36-month
Personal Contract Hire (PCH)
2008
42850
Car Insurance
£24,250 - £30,346
MI5
London
£60,000
The Environment Agency
Bristol
Up to £90K
Boots
Midlands
OTE £85k
Credit Protection Association
Nationwide Opportunities
Completely London
Luxury Condo's in Manhattan with NYC views
The best new homes in Wimbledon?
Nationwide
Fabulous Cruise And Cruise & Stay Offers Including Virgin Atlantic Flights Prices Start From Only £699pp!
Last Minute Cruise And Cruise & Stay Offers. Med From £499pp, Caribbean From £699pp!
5 star quality at a 3 star price.
8 fabulous Canadian cities ...you won’t find cheaper
Contact our advertising team for advertising and sponsorship in Times Online, The Times and The Sunday Times, or place your advertisement.
Times Online Services: Dating | Jobs | Property Search | Used Cars | Holidays | Births, Marriages, Deaths | Subscriptions | E-paper
News International associated websites: Globrix Property Search | Property Finder | Milkround
Copyright 2009 Times Newspapers Ltd.
This service is provided on Times Newspapers' standard Terms and Conditions. Please read our Privacy Policy.To inquire about a licence to reproduce material from Times Online, The Times or The Sunday Times, click here.This website is published by a member of the News International Group. News International Limited, 1 Virginia St, London E98 1XY, is the holding company for the News International group and is registered in England No 81701. VAT number GB 243 8054 69.
royal mail tells the public its percentage of letters are down but forget to say postman like myself bags are getting heavier due to delivering our own and every competitors mail as well even with new automation mail still has to be delivered never the less postman always seem to take the blame for bad management over the years
ken brunt, essex, london
once again the post-workers are forced to make sacrifices because of bad decision making by royal mail management who incidentally are from the private sector,which says everything considering royal mail has always been a public owned business.also a final thought,do you think these managers,such as adam leighton and adam crozier will not pay themselves big fat bonuses,i dont think so.
steven barnes, runcorn, england
Once the service delivered by Royal Mail has been forced out of operation because other couriers take all the profitable routes. How much do you think you will have to pay for mail deliveries?
Just look at how expensive rail tickets became after deregulation.
Philip Blow, Cambridge, UK
Croydon is full of TNT and DHL and Royal Mail. It's called competition and choice.
How would you feel if there was only one bank in the Uk and we all had no other choice?
Downsizing is now part of life. Technology is also to blame for the reduction and need for manual labour. Maybe the transferrable skills of Postmen and postwomen will be useful to the other postal operators.
Tom, surrey,
The regulator is the problem. They are allowing big companies such as BT to use TNT and the like who collect the mail then get Royal Mail to deliver it for a cheaper price than Royal Mail are allowed to charge. If TNT want the busines they should deliver the mail as well!
A C Stuart, Manchester, England
So we all use email or IM where we can - quicker and cheaper. It is called progress and I reckon in 20 years from now when I'll be an urn full of ashes there will be maybe just one snail mail delivery a week plus a parcel/package service.
Chris Goodman, Fareham, England
I must confess, I hadn't noticed that so many houses had been knocked down.
michael murphy, brightlingsea, england
Not sure what this means?
Mark Bissett, Torbay, Devon
The redundant Mr. West's comments are just that. Funny how for 150 years the Post Office made a profit on the backs of postmen/women's low wages, supplemented by overtime.Now that there is only one delivery and virtually no overtime for the staff, why aren't they making a profit?
Brian O'Connell, Liverpool, UK
My experience of the Post Office when I was in UK earlier this year, left much to be desired.
Less staff longer queues, no wonder my British Mail now comes from the continent.
Mike, Paphos, Cyprus
I run a small business that uses the Royal Mail both for own use and mailing ofor customers.
Over the last year or so, the service quality has deteriorated for sent, received and collected mail, service availability has reduced, bureaucratic complexity has increased, the service is now significantly more expensive and future planned measures will increase the cost yet further.
Clearly if you let good private sector managers loose on a huge public monopoly, you end up with the worst possible result - profit at the expense of service; complexity in place of simlicity. The same has happened with the railways and utilities.
I'm no great fan of the public sector on delivery and well remember the uselessness of 1970's monoliths, but maybe we just have to make a choice sometimes between maintaining core services fairly and simply for the wider benefit of society or forcing everything into meeting the rigours of the marketplace, irrespective of the direct and indirect cost to society.
MarkS, York,
As a former Royal Mail senior manager (redundant in 2004), I can only say that we saw this coming. Unfortunately the union blocked every attempt to improve efficiency and management (under government guidance) was too weak to push through the necessary changes to working practices. Competition means that the monopoly provider will lose busness and jobs, but sadly the ones that will be left are those that will service the unprofitable bits that the private sector don't want. That inevitably means state subsidy at some point if we are to have a rural, domestic postal service. Daily delivery to every household is too labour intensive to be profitable and will be largely left to Royal Mail who are required to do it by the regulator whether or not it makes commercial sense..
Dave West, Croydon,
I must confess, I hadn't noticed that so many houses had been knocked down.
michael murphy, brightlingsea, england
If this news had been broadcast in france you'd have 30000 people marching on the streets tomorrow....come on England where is the backbone?
English man in France.
Richard, Strasbourg, France
Before Ian Griffiths, Head of Royal Mail letters goes, does he think that I could have all of the letters I know have been posted to me but never arrived - including three Father's Day cards. Oh, and I did call their "customer services" to complain but she just got aggressive and then hung up on me.
Nigel Rawlings, Tonbridge, Kent
Royal Mail is obliged to deliver to anywhere in the country. In seeking to reduce costs under "competitive" pressure where does this cost comparison come from? Are there actual competitors who are willing to sign a contract to offer the same or better universal service at prices dictated by Ofcom to Royal Mail?
Royal Mail seems to be this government's whipping boy, PFI contractors their spoilt child.
Bob , London, UK
The attack on the Royal Mail monopoly has been yet another 'inspired' disaster.
I have not sent a parcel since what is now Parcelforce was split from the Post Office, removing the contact point from the Town.
The telephone business was lost to BT.
Now with the rapid growth of email and text messaging, the volume of private and business correspondence can only be falling. What happens? The profitable bulk mailing is removed from Royal Mail.
The only visible growth area, from the point of view of the private individual, would seem to be in internet trading. The goods have to be delivered. But the value will be in moving parcels rather than letters.
The large mail sorting centres are fast and efficient, but a letter sent from one side of the town to the other has to go on a round trip of 50-60 miles to the mail centre between posting and delivery. Cost effective in bulk but not if the volume of letters handled falls.
So ...?
Tony, Farnham, Surrey
Why are we allowing the Government to break up the Post Office in order to privatise it? As this is what they are clearly doing. It is not their Post Office, it is ours.
speak, An English Shire not 'uuukaa', England