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Postal Strikes Who Wins?

on October 4th, 2007

postalstrikeThe Small Business Blog has just posted 4,000,000 UK Small Businesses damaged and inconvenienced saying:

In an unbelievable display of ” We could not care less about our customers“, the Royal Mail workers are on strike, for five (5) days. Small business is set to suffer the most, and will have to foot a hefty bill for this madness.

As usual in these cases, one side blames the other – the truth is both sides are to blame as usual. I can only urge all small businesses, like SOHO-, SME, SMB-, Micro-, Lifestyle-, Home-, DIY-, Hobby-, Boomer- or Personal businesses, like professional, contractors, freelancer, self-employed, sole-trader and virtual assistants, to find a new service provider for their mail and parcel services.

I have to agree and reading a number of other posts and forums today it seems many small businesses are forging relationships with alternative providers or are now changing their processes to make more use of alternatives such as email. In the process many SME’s are identifying cost savings and are therefore unlikely to ever return to using the Royal Mail.

According to the BBC:

At the centre of the dispute is the CWU’s objection to the Royal Mail’s 2.5% pay offer and modernisation plans, which it says will put about 40,000 jobs at risk.

Royal Mail says that, without dramatic reform, it will not be able to survive in a liberalised mail market.

It is concerned that the strike will lead to a further loss of business and add to its financial losses.

Which really points out who is benefiting from the strike, it’s the CWU who are getting to flex their muscle and show their members that they’re doing something to earn the union fees. Bizarre really given that their action will over the long term limit the Royal Mail’s ability to offer any pay increase and is likely to force the Royal Mail to cut even more of their members jobs.

David Frost, director general of the British Chambers of Commerce summed it up nicely:

This will hasten the demise of the Royal Mail.

A great business opportunity for DHL, Business Post, TNT Post though…

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    “A great business opportunity for DHL,Business Post,TNT post though”.
    Only problem is,Royal Mail delivers nearly all mail for the contracts these companies win !

    Phil Jeffery on October 4th, 2007

 


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