Royal Mail probed by Ofcom over post delivery delays

Royal Mail is being investigated by communications regulator Ofcom over its failure to meet delivery targets for first and second-class post over the past year.

Ofcom said that there was reasonable grounds to believe that the service provided by the postal monopoly was well below statutory targets.

The regulator announced it would now gather further evidence to determine the significance of breaches. 

It said: ‘Our investigation…will gather evidence to understand the reasons behind this substantial lapse in performance, and determine whether Royal Mail has breached its requirements.’

Ofcom added it took ‘compliance with quality of service targets very seriously.’

Royal Mail conceded earlier this month that nearly one-in-five first class deliveries were not made on time.

Royal Mail said just under 82 per cent of first-class post was delivered the next working day in the 12 months to the start of April. 

This was an improvement on around 75 per cent a year earlier, but still below its target of 93 per cent.

Its second-class deliveries fared better, according to its annual service statistics, and 95 per cent of these items arrived as expected within three working days. 

However, this was still below the company’s target of a minimum of 98.5 per cent second-class items delivered within this timeframe.

At the time, Royal Mail said that the quality of its service during the year to April was ‘materially impacted by the exceptional ongoing effects of the pandemic resulting in increased Covid-related absence and self-isolation and social distancing in line with government guidance’.

Absences among Royal Mail staff hit a peak in January, when over 15,000 employees were off sick or were self-isolating, as the Omicron variant of Covid-19 spread across the country. 

The group has also seen customer complaint levels rise sharply. 

Earlier this year first class stamp prices jumped by 10p to 95p and second class stamps by 2p to 68p.

This month, bosses said the group was facing ‘significant headwinds’ amid surging costs.

Royal Mail shares have fallen today and were down 3.59 per cent or 11.80p to 317.10p in late morning trading, having fallen over 46 per cent in the past year. The group is likely to be ousted from the FTSE 100 index next week. 

Ofcom’s statement in full

Ofcom said in a statement today: ‘Ofcom has today opened an investigation into Royal Mail’s failure to meet its delivery targets during 2021-22.

‘Royal Mail is required by Ofcom to deliver 93 per cent of First Class mail within one working day of collection and 98.5 per cent of Second Class mail within three working days of collection.

‘However, across 2021-22, the company announced that only 81.8 per cent of First Class mail was delivered within one working day and 95.4 per cent of Second Class mail was delivered within three working days.

‘In addition, Royal Mail is set a target of completing 99.9 per cent of delivery routes on each day that a delivery is required; but completed 94.09 per cent of routes over this period.

‘Royal Mail is also required to deliver 91.5 per cent of First Class stamped and metered mail products delivered within one working day in 118 postcode areas of the UK, but it did not meet the target in any of these postcode areas.

‘Performance against these targets is measured as an average performance level on an annual basis excluding the Christmas period.

‘Ofcom takes compliance with quality of service targets very seriously. Our investigation, on behalf of postal users, will gather evidence to understand the reasons behind this substantial lapse in performance, and determine whether Royal Mail has breached its requirements.’

Royal Mail strikes on the cards?         

Unite the Union has today launched a ballot for strike action as it, and other unions, gear up for an industrial battle with Royal Mail bosses.

Unite claimed Royal Mail wants to remove nearly 550 frontline delivery managers.

the union said that around 2,400 managers across over 1,000 workplaces would be balloted for strike action and industrial action short of a strike between 6 to 29 June – and the union warned that letter and parcel delivery chaos was on the cards.

The vote follows the company’s biggest union, the CWU, preparing to launch industrial action this summer in a row over pay and working conditions. 

Claims: Unite claimed Royal Mail wants to remove nearly 550 frontline delivery managers

Unite general secretary Sharon Graham said today: ‘Our members are the backbone of the Royal Mail, holding the service together while the shareholders seize the profits.

‘Royal Mail is awash with cash. There is no need whatsoever for these cuts, or this ill-thought out redeployment programme. Unite will oppose these plans every step of the way.

‘Our Royal Mail members are guaranteed Unite’s 100 per cent support in any industrial action they take to get the company off this ruinous path.’

Unite national officer with responsibility for Royal Mail, Mike Eatwell, added: ‘Our members have had enough – the Royal Mail senior management has gone back on its word too many times. 

‘If the company cannot be relied upon to treat this workforce with respect then it’s time to take action to underline its importance to the business.

‘Now is the time for the management to come back to the negotiating table to hammer out an agreement that benefits both the customers that use this much valued service and those managers that are holding it together on a daily basis.’