Formulated by UNI AproPost and Logistics Sector
1. Royal Mail plc trading update for the nine months ended
29 December 2019.February 06, 2020.
Sandd and PostNL officially merge.
3. FedEx Statement on Coronavirus. February 05, 2020.
4. Managing returns directly from home. February, 03,2020.
5. American Postal Workers Union Executive Board Endorses Bernie Sanders for President. January 30, 2020.
1. Royal Mail plc trading update for the nine months ended
29 December 2019
February 06, 2020
Royal Mail plc (RMG.L) today issued a trading update covering the nine months ended 29 December 2019
Rico Back, Group Chief Executive Officer, Royal Mail plc, said:
“We had a busy Christmas season, which coincided with a General Election for the first time in almost a century. We achieved a high quality service for customers across the UK due to additional investment and, more importantly, the commitment and dedication of our people - I thank them for all their efforts.
“Overall, our recent trading performance has been broadly in line with our expectations. We confirm adjusted Group operating profit is expected to be £300-340 million (before IFRS 16) for 2019-20.
“We are disappointed that the CWU has issued a timeline for a ballot of its members for industrial action. We stand ready to invest £1.8 billion to modernise and grow in the UK. We want to reach agreement with CWU; but we cannot afford to delay this essential transformation any longer. So we are proceeding with key national trials and local initiatives, to improve our customer offering and grow the business, whilst maintaining good quality jobs and delivering a sustainable Universal Service.”
Summary operating performance
Performance in the period was impacted by 2.5 fewer working days in UKPIL compared to the prior year. This reduced UKPIL volume and revenue growth metrics by around 1 percentage point, on average. For the full year 2019-20, the working day impact will not be material.
Change1 as reported
Change working1 day adjusted
Addressed letter volumes
Unless otherwise stated, results are provided for the nine months ended 29 December 2019.
GLS continued to perform well, with revenue growth of 11.1% (7.3% excluding acquisitions). In North America, Dicom, our Canadian business, continued to perform in line with our expectations. The turnaround of our US business remains in line with our plan for this year. In Europe, revenue growth was driven by strong performances in Germany, Belgium and Eastern European markets.
UKPIL revenue grew 1.0% (2.1% working day adjusted). Parcel revenue growth more than offset the decline in letters.
Total UK volumes were up 3% (4% working day adjusted), and revenue increased by 3.7% (4.9% working day adjusted). Around Black Friday and Cyber Monday volumes were higher than expected. For the rest of the Christmas period2 they were, on average, lower than anticipated.
Due to the risk of industrial action, some customers switched volumes to other carriers. This reduced parcel revenue growth by approximately 0.5 percentage points.
Parcels performance in January was stronger than Q3, which underpins our confidence in a higher level of revenue and volume growth in Q4.
Royal Mail domestic account parcels volumes, excluding Amazon, were up 5% (6% working day adjusted). Royal Mail Tracked 24®/48® and Tracked Returns® volumes, our key e-commerce products, grew by 17% (18% working day adjusted). Quality over the Christmas period for our Tracked2,3 products was even better than last year.
Parcelforce Worldwide volumes increased by 1% (2% working day adjusted).
Total letter revenue decreased by 1.5% (0.4% working day adjusted). It benefited from targeted price rises from January 2019, the European Parliamentary Election in May and the UK General Election in December.
Addressed letter volumes (excluding political parties’ election mailings) declined by 9% (8% working day adjusted), in line with our revised expectations for the full year.
Additional price increases in business mail came into effect from January 2020.
Operations and Transformation
We are disappointed CWU has said it is preparing another ballot of its members for industrial action. We want to reach agreement to secure a successful and sustainable future for our UK business. Industrial action, or the threat of it, is damaging for our business and undermines the trust of our customers. We continue to offer CWU the opportunity for ongoing talks.
We have moved forward in key areas of our transformation plan:
We have moved forward in key areas of our transformation plan:
· We have chosen the supplier for automation of our Warrington parcel hub, which will handle 40,000 items per hour when fully operational. We are finalising the lease for our 2nd parcel hub in the Midlands. It will be able to handle 60,000 items per hour when first operational. Both hubs have the option to increase capacity in the future. We are continuing to explore options for our 3rd (and final) hub.
· We continue to roll out small Parcel Sorting Machines (PSMs). Over the Black Friday and Christmas period, we almost doubled the number of parcels sorted automatically, to 39m from 22m last year.
· A further 7 letter sequencing machines were decommissioned in Q3, making total of 24 year to date, as we adapt our network to handle fewer letters and more parcels.
· We are deploying a range of much needed local change initiatives and key trials, which have been heldup for many months.
Current trading and outlook
As a result of additional investment to underpin our Quality of Service and protect deliveries over the General Election and Christmas, productivity improvement was 1.3% in the period. It is now expected to be around 1.5% for the full year, against our 2% target.
We confirm all other guidance for 2019-2020:
· Adjusted Group operating profit is expected to be £300-340 million (before IFRS 16).
· Addressed letter volume declines (excluding elections) to be in the range of 7-9%.
· Cost avoidance programme is on target to deliver £150-200 million costs avoided.
· GLS adjusted operating profit margin of 6-7%.
The outlook for 2020-2021 is challenging. The Q3 run rate for addressed letter volumes (excluding elections) has not shown the expected level of recovery. This, coupled with the ongoing uncertain business environment, means that we now expect a 1 percentage point increase in the decline, to 7-9% for 2020-21. Further, the ongoing industrial relations environment and delays to the delivery of our transformation plan, when combined with continuing economic uncertainty, increases the likelihood that UKPIL will be loss making in 2020-2021. Unless we are able to make significant progress in delivering our transformation plan, our ability to meet the year 3 targets of our Journey 2024 plan will be compromised.
We are taking additional mitigating actions, and will provide an update on progress with these and further guidance with our 2019-2020 full year results, which are expected to be announced on 21 May 2020.
We continue to execute on our Journey 2024 plan as the best way to deliver a successful and sustainable future for the UK business.
We expect GLS to perform in line with our plan.
2. Sandd and PostNL officially merge
PostNL offered all 11,000 Sandd delivery workers jobs, but 40% rejected the offer outright. Of those who said they were interested, 4,000 signed up to deliver mail for PostNL. A further 300 Sandd workers, including drivers and sorters, have also moved to the former state monopoly.
On Sandd’s website it says: “With one strong national postal network, we keep mail delivery reliable, accessible and affordable for everyone in the Netherlands.”
The merger creates a single postal delivery system once again, after 20 years of competition. PostNL currently controls some 70% of the Dutch postal market and Sandd, which was founded in 1999, controls virtually all the rest – primarily business deliveries.
3. FedEx Statement on Coronavirus
February 05, 2020
FedEx is adhering to all regulations and guidelines from government authorities related to containment of the coronavirus. These work and travel restrictions may affect shipments inbound and outbound to/from Wuhan and other impacted cities within Hubei Province, as well as shipments moving within those cities. Customers can visit fedex.com to check the status of their shipments.
FedEx Express continues to operate inbound and outbound flights to/from China on a regularly scheduled basis as local conditions and restrictions allow, and we are taking recommended precautions in terms of pilot, crew and customer health and safety.
The safety and well-being of our team members is our top priority, and we are closely monitoring guidance by the Centers for Disease Control (CDC) and World Health Organization (WHO). In areas where outbreaks have been reported, FedEx is supplying surgical masks, hand sanitizer and alcohol wipes to team members and vendors and disinfecting facilities in areas where outbreaks have occurred.
In addition, all FedEx and vendor employees reporting to work at Mainland China FedEx gateways and ramps are temperature checked when reporting to work. We are also encouraging our team members to take any signs of illness seriously and seek medical attention as needed.
Source : https://about.van.fedex.com/newsroom
4. Managing returns directly from home
Posten Norge (Norway Post) now allows customers to return goods directly from their own mailbox. So how does it work? Ian Kerr, Postal Hub Podcast, and Marek Różycki, Last Mile Experts, look at the new e-commerce returns solution.
Posten Norge (Norway Post) now lets customers return goods directly from their own mailbox. Already, customers can return e-commerce purchases in a more conventional manner via the post office, but this new service offers a new level of convenience.
If collecting parcels from the mailbox sounds familiar, it could be because in 2018 Posten Norge launched a service allowing customers to arrange at-home parcel collection. Customers can go online, pay for postage, and arrange for next-day collection of parcels, with only a small surcharge on top of the regular postage fee.
The new returns service costs no more than returns lodged at the post office and this will help make this service a winner for B2C consignees.
“It is an important part of the shopping experience to know that you can easily return items with for example the wrong colour or size. It is nice then to be able to return items that you have received in your mailbox via that same mailbox. At the same time, we are happy to be able to offer the online stores an easier return solution for their customers,” says Kirsti Fløystøl, director e-commerce and business development, Posten Norge.
How does it work?
First, the customer goes to the posten.no website to order a pickup from their own mailbox. The customer must enter the tracking number from the returns label on the website when ordering the return pickup. Then the customer attaches a returns label to the parcel and places it in their mailbox for collection.
The postie is advised of the pickup via the daily task list. At the customer’s address, the postie scans the parcel upon collection.
Posten Norge accepts parcels for collection weighing up to 2kg (4.4 lb), and the returns are delivered within two days.
“It is important for us to make e-commerce returns convenient for our customers. To use our mail delivery operation for this service has proved to be cost efficient for us and beneficial for our customers,” adds Fløystøl.
Battling for returns
E-commerce returns has always been a headache for carriers and e-commerce customers alike. This is the latest delivery battleground, with posts and parcel companies jockeying to offer convenient and seamless returns processes. Posten Norge’s residential returns collection service is similar to that offered by An Post (via its proprietary Parcel Box service). Other posts have attempted to offer a similar service.
Is this the ultimate e-commerce returns solution?
From a convenience perspective, it’s hard to beat home collection of e-commerce returns. But with the rise of porch piracy, there are some risks with leaving parcels in the mailbox for collection, especially if the service becomes popular. In particular, mailboxes in rural and urban fringe areas could be targets for speculative thieves.
Not every home has a mailbox suitable for handling parcels, and while such a model probably won’t work for apartment buildings, it is likely to be very convenient for rural or suburban areas.
Dropping off returns at a post office or PUDO might be less convenient, depending on opening times, queues and proximity of the network, but the customer immediately receives proof of receipt of the return – and for some e-commerce merchants, this is enough to start the refund process.
A way to make this service more universal would be to have a smart lock at your home, or for multi-family dwellings without a concierge in a smart lock controlled mailroom.
ConclusionWe like this simple yet customer-centric initiative from one our favorite postal operators and believe that customers will like it too. Well done Posten Norge!
5. American Postal Workers Union Executive Board Endorses Bernie Sanders for President
January 30, 2020
The American Postal Workers Union announced today that its National Executive Board has voted to endorse Bernie Sanders for president. “We’re pleased that a number of presidential candidates have taken positions and actions supportive of postal workers and expanding union rights. But when we judge candidates by their long-term and consistent actions, Bernie Sanders stands out as a true champion of postal workers and all workers throughout the country,” said APWU President Mark Dimondstein.
In their deliberations, APWU’s board members cited Sanders’ record on postal issues including his speaking out against USPS policies that have degraded mail service; his fierce opposition to proposals that would sell off all or part of USPS to private interests; his efforts to keep post offices and mail facilities open; and his support for enhanced customer services such as postal banking. “As the lone senator blocking postal privatizers from appointment to the Postal Board of Governors it was clear that Bernie Sanders is on the side of postal workers.” said Dimondstein.“
More Than Postal Issues
APWU’s leaders also cited Sanders’ sustained commitment to improving the lives of all working people. In their discussions, APWU National Executive Board members mentioned the Vermont senator’s long record of walking picket lines, fighting for living wages and universal health care, as well as his advocacy for improved veterans’ benefits and the expansion of Social Security.
“Senator Sanders was a champion of workers’ rights long before he became a candidate for president,” said APWU Secretary-Treasurer Liz Powell. “Like the APWU, he is a firm believer in social and economic justice for all. It’s no wonder that he is ranked as the most popular member of the U.S. Senate.”
APWU’s National Executive Board also endorsed Sanders in his 2016 presidential campaign.
Sanders Explained to APWU Members His Views on USPS
Addressing a group of hundreds of APWU members prior to the board’s 2016 endorsement, Sanders summed up his position about the Postal Service this way: “The beauty of the Postal Service is that it provides universal service six days a week to every corner of America, no matter how small or how remote. It provides decent paying union jobs to some 500,000 Americans and is the largest employer of veterans…. Yet, the Postal Service is under constant and vicious attack. The same billionaires who want to privatize Social Security, Medicare and public education also want to privatize the Postal Service… The wealthy and the powerful see an opportunity for Wall Street and corporate America to make billions in profits out of these services and couldn’t care less how privatization or degradation of services affects ordinary Americans.”
Getting Out the Vote
“The APWU’s National Executive Board fully recognizes and respects that our members come from all walks of life, hold many differing political beliefs and vote according to their own consciences. However, for our national board to remain silent at a time when the current administration advocates selling the entire public Postal Service to private corporate interests would be a failure of leadership,” said Dimondstein. “As with 2016, once again the Sanders campaign is boldly uplifting the goals and aspirations of workers. Simply put, we believe it is in the best interest of all postal workers, our job security and our union to support and elect Bernie Sanders for president.”
Despite public support for the Postal Service, which has only grown stronger due to USPS’ key role in ecommerce, the White House and the Office of Management and Budget, first through its June 2018 report “Delivering Government Solutions in the 21st Century,” and later through the President’s “Task Force on the United States Postal System,” has released a series of proposals that would end the universal service requirement and also make significant changes in the pricing structure of mail products. The OMB report goes so far as calling for the sale of this public institution to private corporations.
With this endorsement, APWU’s leaders are encouraging their members and their families, who live and work in all 50 states, the District of Columbia and all U.S. territories to support and elect Bernie Sanders president. The union also will engage in voter registration efforts and where there is the opportunity for "no fault" absentee balloting, APWU will encourage members, their families and friends to sign up and avail themselves of this "vote by mail" option.
Source : https://www.apwu.org/press-release
Formulated by UNI AproPost and Logistics Sector
1. Improving literacy through reading and writing.
February 06, 2020.
2. UPU launches new report exploring posts’ role in digital finance solutions. February 05, 2020.
3. DHL makes a u-turn on parcel price increase.
4. Pay claim launched for Post Office members.
February 05, 2020.
5. Posti invites companies to submit bids on mail delivery.
February 03, 2020.
1. Improving literacy through reading and writing
February 06, 2020
With first bells ringing across the country for a new school year, Australia Post is helping build the reading and writing skills of the next generation with the launch of the Pen Pal Club program, a storybook and a new partnership with the Indigenous Literacy Foundation.
The Pen Pal Club and accompanying school resources, aims to get primary school aged children excited about reading and connecting with others through letter writing.
The partnership with the Indigenous Literacy Foundation will see Australia Post send nearly 100,000 books to remote communities, helping children in remote Indigenous communities get better access to books and reading.
Australia Post’s Head of Community Nicky Tracey said that at a time where public discussion often focused on the need to improve youth literacy, Australia Post was proud to be supporting real action on literacy.
“Through the Pen Pal Club children can experience the fun and excitement of getting something in the mail, and connecting with others, sometimes from different cultures and across great distances, while developing their reading and writing skills,” Ms Tracey said.
“We piloted our online Pen Pal Club program with school teachers in September and over 5,300 classes have already registered, with almost 90% of these matched to start their exchanges.”
The Pen Pal Club storybook, written by Sally Morgan and illustrated by Annie White, follows the journey of pen pals from diverse settings across Australia who exchange handwritten letters with each other.
Designed to improve youth literacy, the book and associated school resources are supported by an online Pen Pal Club school exchange program. The program enables early learning, kindergarten and primary teachers to register their class to be connected with another class in Australia to start handwritten exchanges between students in different parts of the country.
Karen Williams, Executive Director of the Indigenous Literacy Foundation said: “In very remote Indigenous communities, children’s books are scarce and literacy levels are significantly lower than anywhere else in Australia. Together Australia Post and the Indigenous Literacy Foundation will help ensure that children in remote Indigenous communities have better access to books and more opportunities to develop literacy skills.”
Author of The Pen Pal Club storybook, Sally Morgan, said improving children’s access to books, reading and literacy helps them develop essential life skills and broadens their horizons.
“Closing the literacy gap will provide children with more exciting opportunities and greater interpersonal skills and the Pen Pal Club provides a positive and engaging platform to help achieve this,” Ms Morgan said.
The Pen Pal Club book, online Pen Pal Club school exchange and associated resources are available free of charge for early learning centres, kindergartens and primary schools. Schools can register at auspost.com.au/penpalclub.
The storybook and Pen Pal Club letter writing kits are also available for purchase at selected Post Offices around the country and online for $9.99 each. $1.00 from the sale of every book will be donated to the Indigenous Literacy Foundation to help provide books to remote communities.
2. UPU launches new report exploring posts’ role in digital finance solutions
February 05, 2020
The Universal Postal Union (UPU) has released a new report examining the role posts play in expanding access to digital finance around the world.
The report, In Post We Trust, has been put together by the UPU’s Financial Inclusion Technical Assistance Facility (FITAF), which assists posts in developing digitized postal financial services.
The report is the first in a series of studies, which will investigate the market demand, policy and regulatory environment, level of innovation, investment, level of trust and value driven partnerships of financial services in countries around the world.
3. DHL makes a u-turn on parcel price increase
The company’s objective is to avoid a drawn-out legal dispute with Germany’s Federal Network Agency () and any confusion on the part of customers with regard to parcel rates.
On January 1, 2020, DHL raised the price for parcels and small packages for private customers by an average of 3% after three years of price stability. This was in response to significant increases in personnel and transport costs, as well as extensive investments in service and quality improvements. DHL informed the Federal Network Agency (Bundesnetzagentur) in the fall of 2019 about the planned price increases and provided detailed documentation establishing compliance with German Postal Act (Postgesetz) rate regulations.
The Federal Network Agency, however, responded by calling the new prices excessive and, on January 28, 2020, initiated an official review of the new prices. As stated in its preliminary resolution, the Federal Network Agency believes that the price increase effective January 1, 2020 would lead to significantly higher revenues than estimated by DHL. Though DHL does not agree with this assessment, it has decided to retract the price increase to avoid a drawn-out legal dispute and any uncertainty with regard to the outcome.
The reversal will take effect on May 1, 2020 due to time required for IT system updates and changes to customer data at more than 24,000 parcel acceptance points. Until then, current prices remain valid. Beginning May 1, 2020, retail outlet and online prices for private customers will revert to prices effective through December 31, 2019.
4. Pay claim launched for Post Office members
February 5 2020
A 3 per cent pay rise for all, long-overdue pension improvements, enhanced annual leave and consolidation of bonuses into basic pay are among the elements of a claim submitted by the union for our Post Office members.
“It’s our view that the 3 per cent wage increase is more than justified when one considers the excellent financial results (£60 million profit for 2018/19, up £25m from the previous year) delivered by our hard-working members over the past 12 months – a challenging time for all of them, but once again they have provided a top quality service to the British public,” CWU assistant secretary Andy Furey explains.
Consolidating bonuses into basic pensionable pay would provide a longer-term gain for members, while annual leave entitlements should, the union argues, be ‘equalled-up’ for all.
And on the same theme of ‘equalling-up for all’, this year’s claim calls for average pay during periods of annual leave “is something that already applies for part-time staff and we want it across the board for everyone,” continues Andy.
There are two aspects to the union’s claim on pensions, firstly to increase employer contributions to our members’ existing pension scheme and also a proposal for a joint working party to work for the introduction of a collective defined contribution (CDC) pensions scheme, when the relevant legislation is passed.
“Post Office pays a maximum of 11 per cent employer contributions into the current DC pensions scheme and we believe this top level needs to increase to 13 per cent plus the employee contribution of 7 per cent making for a total of 20 per cent, which is in line with current Government guidelines,” Andy points out.
“And the establishment of a CDC pensions scheme – when this passes into law – is CWU Conference policy, bringing our post office members in line with our Royal Mail members.”
The claim was formally approved by the union’s industrial executive yesterday and, following its submission to the business, negotiating meetings are expected to be scheduled later this month and into March, with the CWU expressing the intention to reach a settlement before the implementation date of April 1.
5. Posti invites companies to submit bids on mail delivery
February 03, 2020
Posti initiates again its sourcing procedure on mail delivery services in areas not covered by early-morning newspaper delivery. Companies interested in submitting a bid can register for the competitive tendering as of February 3, 2020. The tendering also includes areas where Posti will put out to tender the entire service portfolio.
The Postal Act requires Posti to put out to tender annually the five-day delivery of universal service letters—i.e. letters and postcards equipped with a stamp or other cash payment method—in areas not covered by early-morning newspaper delivery that has been agreed upon commercially.
The competitive tendering was organized for the first time in 2018. For this year’s tendering, the Finnish Transport and Communications Agency Traficom has re-determined the areas. Previously, the areas were based on postal code areas. In the reformed model, the areas have been assessed with delivery point precision. There are altogether 4,324 areas included in the tendering.
“Posti is now organizing the sourcing procedure for the third time. It is of utmost importance to us that this task is carried out in accordance with the stipulations of the Postal Act in a transparent and neutral way. In addition to the universal service items, Posti will organize a tendering in two areas regarding the delivery and picking of items that are not included in basic delivery,” says TuijaÅkerman, Director, Consumer Mail & International Affairs at Posti.
The Postal Act only requires that the delivery of universal service items is tendered. In previous rounds, the competitive tendering has not introduced any new deliverers, which means that Posti has organized the delivery of all areas mentioned in the competitive tendering.
The sourcing will not affect the basic delivery of newspapers in sparsely populated areas. Newspaper delivery will continue according to existing contracts.
The Postikilpailutus.fi website will be opened on February 3, 2020
Companies willing to participate in the tendering are requested to register between February 3 and February 14, 2020, using the registration link on Posti’s website postikilpailutus.fi.
The Postikilpailutus.fi website features information on the execution of the tendering, the areas included in it and any special requirements. Companies willing to participate in the tendering are asked to register using an electronic form where you fill in the name of the company and contact persons, business ID and email address.
Like last year, the competitive bidding will be organized electronically in Posti’s Sourcing Portal. The company submitting a bid selects the area or areas for which they want to submit a binding tender in the Sourcing Portal by entering the price of the performance they offer. The competitive tendering will be organized in accordance with the principles of the Act on public contracts and concessions of entities operating in the water, energy, transport and postal services sectors.
According to Åkerman, the same requirements and selection criteria apply to all participants in the tendering, including Posti.
The basic criteria of the competitive tendering include the company committing to the ethical guidelines and environmental criteria of Posti’s suppliers as well as being a Reliable Partner in accordance with Vastuugroup.fi.
At the end of the tendering procedure, Posti’s Sourcing will compare the tenders on April 2–30, 2020 and award the contract to the most economically advantageous tender based on an overall assessment. Operations under the contract will begin on July 1, 2020.