OFCOM ANNOUNCEMENT – FUNDAMENTAL REVIEW OF THE REGULATION OF ROYAL MAIL 

OFCOM ANNOUNCEMENT – FUNDAMENTAL REVIEW OF THE REGULATION OF ROYAL MAIL 

As you may be aware, last Friday Ofcom published a discussion document setting out a fundamental review of the regulation of Royal Mail.

 

While Ofcom has presented this to the press as part of its work to secure the universal service, it is conducting the review in the wake of Whistl’s withdrawal from the letter delivery market and in the light of its concerns that Royal Mail is exploiting its position to prevent competition and new entrants like Whistl getting a foothold. It is therefore clear to us that Ofcom’s agenda in conducting the review is restricting Royal Mail’s commercial freedom, and putting greater pressure on it over efficiency.

 

As you may have seen in the media, Ofcom’s announcement led to a 4% drop in Royal Mail’s share price. The CWU has already expressed serious concerns in respect of Ofcom’s attitude towards Royal Mail and our member’s terms and conditions and we believe that the impact on Royal Mail’s share price is a further example of the lack of care and consideration on Ofcom’s part for protecting the universal service and a delivery to every address in the UK six days a week. This goes against the very purpose of Ofcom’s existence.

 

The CWU is passionate in ensuring that the ‘People’s Post’ is protected and does not become the victim of a deteriorating relationship between Royal Mail and Ofcom, with Ofcom seemingly indifferent to the effects that its actions can have on the company’s performance.

 

Against that backdrop the CWU will be considering the review that has been announced in further detail and submitting our views and comments for consideration.

 

Any queries about the contents of this LTB should be addressed to the DGS (P) Department quoting reference LTB 485/15.

 

Yours sincerely

 

 

 

 

 

 

Terry Pullinger​​Dave Ward

Deputy General Secretary (Postal)​​General Secretary

 

 
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