ROYAL MAIL GROUP – HALF YEARLY FINANCIAL RESULTS
Please find attached to this LTB a paper from CWU Research highlighting the key points contained in the company’s financial results, issued today, together with a press release from the DGS(P) Department.
Despite the tough competitive and regulatory environment, the latest results (covering the six months to 27 September 2015) show that overall revenues and profits were broadly flat. Operating costs are down and employee productivity has risen significantly with efficiency improvements delivered across all parts of the Royal Mail Group.
To maintain such a solid performance in the face of increased competition and huge price pressure, while still delivering an excellent public service, is clearly a testament to the continued hard work and commitment of CWU members and the vital contribution they make to the success of the business.
But the latest accounts do not paint the full financial picture and reflect the wider impact of full privatisation. The Government took £750m out of the business when it sold its final stake in Royal Mail and, to date, the company has paid out £343m in dividends to private shareholders (a figure that will rise to £416m by January 2016).
Through the People’s Post campaign, the union will continue to challenge the role of the Regulator and press for a level competitive playing field that allows Royal Mail to fulfil its Universal Service obligation and deliver to every home in the country, at a uniform price, six days a week. The Regulator should be in no doubt that the CWU will continue our campaign to protect not only the postal service but also our members’ terms and conditions and the Agreement we have with Royal Mail to deliver long term growth and success.
However, underneath these positive results is declining morale in the workplace particularly in the light of Royal Mail’s failed resourcing strategy. Clearly steps have been taken to address that issue and as well as us pushing the growth agenda (which is crucial in the light of the continuing decline in letter traffic) we will also be reminding Royal Mail that real success is not only measured by the statement of accounts but by a tangible, mutual interest of conditions in the workplace consistent with our Agreements.
COMMUNICATION WORKERS UNION
URGENT INFORMATION FOR MEMBERS
Any enquiries on the above LTB should be addressed to the DGS(P) Department.
Deputy General Secretary (Postal)