Royal Mail Strikes again

Posted: 27th March 2012

Royal Mail plans could see 50% price hikes

In a stark warning to Royal Mail about the impact the recent plans to abolish the lower weight/price bands for packet post, the BOSS Federation says it will inevitably encourage members to switch to other distribution options.

The BOSS Federation has written to Royal Mail Chief Executive Moya Greene to protest at the recent announcement; they intend to abolish the lower weight/price bands for packet post from 2 April this year, in favour of a flat rate of £2.19 for all items up to 750g.

BOSS says its membership comprises a significant number of major users of postal services and Royal Mail customers. It points out that all the businesses along the distribution chain in the office products industry use postal services for some aspect of their business. For many it represents a significant part of their business.

Depending on individual company contracts with Royal Mail, BOSS estimates that the proposed new flat rate charge will represent anywhere between 25% and 50% increases to its members’ postal costs.

The Federation’s letter stresses that “Increases in postal distribution costs of this magnitude will have a direct impact on both whether their business survives and on the number of people they employ.”

BOSS is also angry that this change is being implemented without prior negotiation, or a sufficient notification to enable companies any time to absorb the increase, which is unlikely, or to pass on the additional costs.

 27-Mar-2012