Tense session for Royal Mail bosses

Royal Mail CEO Simon Thompson, operations development director Ricky McAulay, and Keith Williams chair of parent group International Distributions Services all took the oath after being recalled to appear again before the BEIS cross-party committee yesterday (22 February), with Thompson required to clarify some of the answers he gave at the earlier hearing.

In a tense session, Thompson avoided giving a yes or no answer to a question about whether there had been a systemic failure at Royal Mail to meet its Universal Service Obligations (USO). 

Jones said the committee had received information that claimed the postal operator had been in breach of the USO “for years”.

He also queried why the delivery of the USO was not incentivised in Thompson’s long term incentive plan. 

Thompson did admit that parcels were prioritised over letters during periods of industrial action, and recovery from industrial action. 

He also cited the sharp reduction in letter volumes, and the fact that more than 50% of the business now involves parcels.

“We need to compete in parcels while meeting our USO obligations,” Thompson stated. 

“Customers are asking for a seven day parcels service to and from the doorstep… customers have also said a five day [letters] service would be OK for them. We don’t have a choice but to manage these challenges.”

Thompson also asserted that he wanted Royal Mail “to be a great business”.

“This is not an easy task. We are making changes that have been overdue for some time.”

Royal Mail had special dispensation during the most disruptive phase of the pandemic over its USO obligations to allow for worker absences, but that has now ended. 

Parts of the printing industry are watching developments closely, with certainty over mail deliveries a critical part of the planning for many time-sensitive printed direct mail campaigns and promotions. 

Royal Mail is also facing the threat of further industrial action by workers who are members of the CWU, following the recent ballot. 

The issue of PDAs (postal digital assistants) and the use of data to track workers was also a contentious topic. 

After the session concluded, Jones tweeted: “The answers we heard on @CommonsBEIS from Royal Mail leaders today completely failed to stack up against the thousands of testimonies we’ve received from postal workers across the country. I’ll be announcing what further action we’ll be taking on this issue shortly.”

The CWU also tweeted: “Darren Jones MP. He has held power to account – twice. Thank you from every postal worker in the UK. Not all politicians are the same.”