‘Businesses will be going under because of this’: The cost of the Royal Mail strike

Small businesses are struggling to survive against the rocketing cost of living crisis and the Royal Mail strike.

Speaking to people who run companies that rely on delivers, the MEN discovered a shocking rise in abuse and huge losses, with one company reporting losses up to £15k this year.

Members of the Communications Workers Union (CWU) who work for Royal Mail have walked out five times already this month in a dispute over pay and conditions and are striking today and Christmas Eve (December 24).

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This has led to parcels and letters taking weeks instead of days to deliver with people being encouraged to shop in-store instead of online to get gifts in time for Christmas. This is having a bruising impact on small independent retailers in the region who rely on a strong online December trade as strike action is leading to higher postage costs and late deliveries, with customers venting their anger back at the retailer. Post Offices have also reported taking a lot of flak despite not being part of Royal Mail, with mail piling up in branches.

Nicole Broad runs The Fruit Moth and designs and creates accessories, clothing and homeware, sustainably by hand. She set up her business online in 2020 before obtaining a spot in the Manchester Craft and Design Centre in Manchester’s Northern Quarter in June to run the business. Nicole runs the business herself and was gearing up for a busy December as people visit each other to exchange gifts again, however, strikes have completely shattered these hopes.

“I rely on my online sales, it makes up 80 per cent of my trade,” Nicole told the MEN. “I’ve always used Royal Mail to deliver, and I totally agree with the strikes, but for small businesses it’s absolutely terrible.

“I’ve had a lot of materials stuck in transit since November and deliveries are taking a lot longer to be sent out. A lot of the customers are understanding but at Christmas you get a lot of new customers who don’t know you as well and a few have them have been complaining and not being very nice. I just feel like a broken record having to say to them there’s nothing we can do, haven’t you watch the news?

“I’ve started having to pay for special deliveries out of my own pocket which is an extra £4 at least which adds up but I have to do it just to try and stop these complaints and losing potentially new customers. It’s been horrendous.”

Nicole added that sending packages first class, an option her customers can select, is not getting the deliveries out any quicker, and she is having to fork out £9 in total each time for special deliveries. This has led to the businesses being 40 per cent down on sales compared to previous months, in what should be the month where the most sales are made.

“It’s going to stop people shopping online with small businesses,” Nicole said. “I’m trying to claw back some of the sales but it’s very quiet now. This is just benefitting Amazon who don’t need it, independent businesses who usually rely on a trustworthy Royal Mail do. Other delivery companies are more expensive and have said they can’t take any more business either, they’re totally overrun too.

“I’m running this on my own so the complaints we get are personal. It’s not putting me in the Christmas spirit at all.”

This is a feeling many are having at the independent arts and crafts centre, Nicole said, with train strikes also affecting business by reducing footfall in the city.

The feeling is shared by Steve Heaton, who runs Swinton based SECameras with his wife Emma, having set-up in 2011. He told the MEN they have lost up to £15,000 of business this year, with their December trade usually carrying them through the first few months of the next year. Steve said he could not support the strikes due to the “massive impact” it was having on his business.

“We have lost quite a lot of business,” he said, “we’ve been unable to even ship quite a few orders because the Post Office won’t accept them.

“Some parcels have been getting lost or taking ages to send so we’ve had to refund people for orders of hundreds of pounds which is a massive hit for us. We’ve had to change to DHL who have been very good and helpful but they’re snowed under.

“This is by far our most important month of the year and they (striking workers) certainly know what they’re doing for maximum impact. But it’s having a disastrous effect on small and medium business who rely on December trade to keep afloat, it’s a lifeline for many.

“Early post deadlines this year have meant the last few weeks have been very quiet when they can usually be really busy with people getting last minutes gifts. We had someone drive to us from Gloucester to pick up their order as they knew it would not be delivered in time. It was great for us but that’s not good enough generally, we’ve lost so many sales, we’ve lost thousands of pounds.

“We’ve been paying out of our pocket to try and get faster deliveries to people because the last thing we want to do is have to refund but we’ve still had to sometimes. There have been complaints and it’s taken very personally for a business like us, but it’s completely out of our hands.

“The personal impact the strikes are having on small business is enormous so I can’t support this (strikes). Businesses will be going under because of this, it’s going to be a very difficult few months for us. It’s all doom and gloom at the moment anyway with the cost-of-living crisis which makes the impact of strikes even harder.”

Many local businesses had to post repeatedly on social media to warn customers that they needed to order before certain cut off dates to guarantee delivery before Christmas. One Bury based online business, which wished to remain anonymous, said they regularly had to post on social media reminding customers of the strikes and delivery deadline dates, which have been passing over recent weeks, as people had “increasingly unrealistic expectations”. They added there had been many adverse reactions to delivery times this year despite strikes being an ‘ongoing situation’ and the publicity of this for months leading up to Christmas.

A Royal Mail spokesperson said: “We have been clear with the CWU that industrial action undermines the trust of our customers. We operate in a competitive market, and our customers have choices. Continued strike action will force our customers to make those choices sooner rather than later.