No 81 -2020
Formulated by UNI AproPost and Logistics Sector
1. Royal Mail CDC pensions ‘could outperform DB as well as DC’. October 07, 2020.
2. Preliminary results: Deutsche Post DHL Group records strong business development in Q3 and increases 2020 EBIT guidance. October 07, 2020.
3. PostNL announces €150 million sale-and-leaseback agreement.October 06, 2020.
4. NZ Post encourages people to “give Santa a helping hand” and send early for Christmas. October 06, 2020.
5. PHLPost: Bringing local government services closer to their constituents.October 02, 2020.
1. Royal Mail CDC pensions ‘could outperform DB as well as DC’
October 07, 2020
Latest actuarial modelling suggests the new Royal Mail CDC/DB pensions scheme could provide returns some 70 per cent higher than current Defined Contribution schemes and CDC schemes could even outperform Defined Benefit, says our DGSP Terry Pullinger in his video update to members today.
Work done by Wills Towers Watson Actuaries suggests “that the CDC scheme, on average, would produce 70 per cent more for an individual than a DC scheme and 40 per cent more, currently, than a DB scheme,” Terry explains, adding: “Now that is massive news and will certainly shake up the pension world.”
Defined benefit pensions schemes are, he reminds us, still considered “the ‘gold standard with guaranteed outcomes,” but adds that Wills Towers Watson’s performance modelling, “which has gone on ever since we created this scheme, even through the Covid period” suggests that CDC schemes “would on average actually produce a better benefit.”
Today sees the Pension Schemes Bill return to the House of Commons for its Second Reading, after which it moves into its final Stages and, providing it progresses, will then receive Royal Assent and pass into law.
Opposition to the Bill is not expected, although MPs will, no doubt, be looking carefully at the legislation and ensuring that it meets all of the usual stringent tests for new legislation.
If the progress of the Bill continues as currently scheduled – and it will become the Pension Schemes Act once it has received Her Majesty’s formal approval – Terry anticipates that the Royal Mail CDC Scheme would likely be introduced into the company “at some point next year” and “bring all our members into one ‘wage in retirement scheme.”
CWU members are warmly praised by our DGSP, who thanks them for the tremendous support” they gave to the union’s 2017 Four Pillars campaign, which was so powerful that it forced Royal Mail and the CWU into designing a new and unique on-going agreement on pensions that still offered a wage in retirement, and that led to this ground-breaking development.
Back in 2017, Royal Mail workers in the company’s DB scheme were faced with the prospect of being transferred into the DC scheme. DC schemes were once seen as the answer to reducing DB provision, but time had suggested that the outcomes for DC members would be insufficient to sustain dignity in retirement.
“So we were insistent that there must be another way,” explains Terry, “and we refused to accept that the only answer was a lump sum paid out when you retire, which wasn’t producing the best results and was insufficient to sustain people through their old age.”
Eventually, as a key aspect of the Four Pillars agreement, both the CWU and the business agreed to find a better solution, he continues: “We both got on the same page to develop the art of the possible.
“How to create such a pension scheme.”
With help and expert assistance from First Actuarial, who have aways been a great support to the CWU, and other unions, as well as Wills Towers Watson and others who support Royal Mail, the principle of a CDC scheme – a collective, shared-risk scheme – was agreed and a specific, Royal Mail CDC scheme was designed – and robustly modelled.
The scheme would replicate the old DB scheme in design, producing a wage in retirement generated via CDC and a guaranteed lump sum.
Although CDC in different forms is used in other countries, such as Canada, Denmark and the Netherlands, no scheme of its type has previously existed in the UK and so legislation was required.
“I know that it’s through the collective strength of CWU members that we’ve managed to achieve that,” insists Terry, who makes the further point that, as well as being beneficial to Royal Mail workers, the precedent set could also be “a game changer for many working people.”
For workers in other companies, “this could make a massive difference to their lives and certainly to what their retirement might look like,” he suggests, adding: “Hopefully it will encourage other employers to move away from DC and into this type of scheme, CDC, so that people can get back to having a Wage in Retirement and dignity in retirement.”
The CWU does not support any sense that CDC should replace DB schemes and believes that DB schemes are the ‘gold standard’ and will remain so until time suggests otherwise.
However, for CWU members, the modelling is excellent news that supports our view that we have found a way to give our members a genuine pensions that produces a wage in retirement.
After describing the current situation as “a big moment, a massive moment,” Terry gave a “massive thank you to all of our members who backed this union unanimously,” and that this is clear evidence that we only get what we deserve if we negotiate from a position of strength.
“It’s been a long time waiting, but we’re getting closer and closer,” he added.
2. Preliminary results: Deutsche Post DHL Group records strong business development in Q3 and increases 2020 EBIT guidance
October 07, 2020
Bonn - Deutsche Post DHL Group has today released preliminary results for the third quarter of 2020. Based on these results, the company has increased its guidance for 2020.
In the third quarter, the Group has continued the positive dynamic seen at the end of the second quarter. In September, typically an important month after summer, Deutsche Post DHL Group has seen shipment volumes holding up very well.
Preliminary Group EBIT increased to around EUR 1.37 billion in the third quarter (2019: EUR 942 million). This includes the effect of the one-time bonus of EUR 300 to each employee (approx. EUR -170 million) as well as the one-time payment to P&P employees as part of the just concluded wage agreement in Germany (approx. EUR -45 million).
"Our business has performed very well in the third quarter. Thanks to the outstanding commitment of our 550,000 employees worldwide we were able to significantly benefit from the dynamic e-commerce growth in our businesses", said Frank Appel, CEO Deutsche Post DHL Group. "We are now fully focused on preparing for an exceptionally strong Christmas business. For this, the safety of our employees and the quality of service for our customers remain our top priorities."
Q3: Positive divisional & cash flow performance
Operating profit in Post & Parcel Germany rose to around EUR 320 million in the third quarter (2019: EUR 304 million) - despite the effects of the one-off payments totaling to EUR -95 million. The Express division managed to increase its EBIT in the third quarter to around EUR 750 million (2019: EUR 454 million) driven by a strong development in TDI volumes. Operating profit in Global Forwarding, Freight stood at around EUR 155 million, clearly above previous year's Q3 with EUR 124 million. The earnings development at Supply Chain recovered due to increasing customer activities: EBIT amounted to around EUR 110 million in the third quarter (2019: EUR 162 million). DHL eCommerce Solutions has seen a further acceleration of EBIT driven by strong B2C volumes in its markets and recorded an EBIT of around EUR 75 million in the third quarter, clearly ahead of previous year's EBIT (2019: EUR 6 million). Corporate Functions recorded a result of around EUR -40 million.
The overall positive business development is underpinned by a continuous strong development of cash flow; free cash flow has significantly increased in the third quarter to more than EUR 1.0 billion (2019: EUR 507 million), resulting in a positive free cash flow of more than EUR 1.2 billion for the first nine month of 2020.
Guidance on EBIT and free cash flow increased for 2020
In light of the ongoing earnings momentum, the Group has decided to adjust the outlook for the full year 2020 as follows:
The reported Group EBIT is expected between EUR 4.1 billion and EUR 4.4 billion (previously: EUR 3.5 billion - 3.8 billion). In anticipation of a very strong peak season in particular driven by the dynamic e-commerce growth, the company is focused on securing all necessary resources required to maintain a high quality service level. Achieving the upper end of the guidance will mainly depend on whether the volume development will allow for an efficient utilization of the networks.
The Group continues to expect an EBIT of around EUR 1.5 billion for the Post & Parcel Germany division. For its DHL divisions Deutsche Post DHL Group now forecasts an EBIT between EUR 3.3 billion and EUR 3.6 billion (previously: EUR 2.8 billion - 3.1 billion). Operating profit in Corporate Functions is now expected at around EUR -700 million (previously: around EUR -750 million). This includes negative effects of around EUR 350 million as part of the already communicated and still valid cost of around EUR 400 million for the re-alignment of the StreetScooter activities. The remaining amount of around EUR 50 million will now be booked in 2021.
Gross capex for the full year 2020 is still expected to be in total at around EUR 2.9 billion, free cash flow is now expected to be more than EUR 1.8 billion (previously: around EUR 1.4 billion). This includes all mentioned one-off effects and the already previously expected around EUR 300 million for the 777 renewal program in the Express intercontinental fleet.
The comprehensive disclosure for Q3 and the first 9 months of 2020 will be released on November 10th as planned.
Source : https://www.dpdhl.com/en/media-relations/press-releases/2020
3. PostNL announces €150 million sale-and-leaseback agreement
October 06, 2020
PostNL today announced that it has entered into a sale-and-leaseback agreement with Urban Industrial relating to four mail sorting centres in the Netherlands, located in Amsterdam, Rotterdam, Zwolle, ‘s-Hertogenbosch and the international sorting centre in The Hague. Urban Industrial is a Dutch company. Its main activity is the acquisition and long-term exploitation of industrial real estate. Urban Industrial’s total real estate portfolio comprises approximately 750,000 m2. Through this transaction, PostNL is strengthening its balance sheet and releasing value for the company.
PostNL will receive proceeds of €150 million from the sale-and-lease-back transaction. The related book gain of around €61 million will be labelled as a one-off result and as such will not impact normalised EBIT and normalised comprehensive income.
The net proceeds will improve the free cash flow for 2020. Taking into account the long-term lease arrangements related to this transaction, the impact on the adjusted net debt position will be approximately €97 million, improving the leverage ratio.
The improved financial position allows us to accelerate the digitalisation of our company in a number of key areas as part of the transformation of PostNL.
The transaction is expected to close in November 2020, subject to customary closing conditions.
Source : https://www.postnl.nl/en/about-postnl/press-news/press-releases/2020
4. NZ Post encourages people to “give Santa a helping hand” and send early for Christmas
October 06, 2020
NZ Post is getting ready for Christmas, and is asking people to give Santa a helping hand by taking note of the cut-offs for sending dates in New Zealand and around the world.
NZ Post Chief Operating Officer Brendon Main, says Kiwis can help to make sure their Christmas presents are safely under the tree in time for Christmas by getting organised and sending and ordering Christmas presents early.
“It’s been an unpredictable year, so we want to make sure Kiwis are ready for Christmas in plenty of time.
“Due to the COVID-19 worldwide pandemic we have brought forward the deadlines for sending parcels overseas by one week. But we are mindful of how quickly things can change, so we will be keeping our website nzpost.co.nz up to date if there are any changes to these dates between now and Christmas.
“We’d encourage Kiwis to send items as early as they can, both within New Zealand, and internationally, to ensure they are there in plenty of time for Christmas. We also encourage people looking to order items from overseas online stores to do this as early as they can.”
Christmas is usually NZ Post’s busiest time of the year, but due to the COVID-19 Lockdowns, this year has already broken parcel delivery records. “Online shopping remains about 30% up on this time last year, but if COVID-19 has taught us anything it’s the unpredictable nature of the pandemic – so while we are planning for a big Christmas season, it is difficult to know for sure what the next few months are going to bring for online shopping in New Zealand.
“When the Alert Level 4 Lockdown lifted and restrictions of what Kiwis could buy online opened up earlier this year we received about 3.5 million parcels in just two weeks, around 200 parcels a minute, volumes we were not preparing for until many years in the future.
“We’ve learnt a lot from that and we have made changes to how we do things to be ready this Christmas to get those presents under the tree. We’ve planned for a range of different scenarios and are bringing on three additional sites to manage surges in volumes, 200 more courier vans, 185 extra flights, 350 additional processing people and more than 1500 extra transport runs to deliver Christmas presents for New Zealanders.
“We’re very proud of our people – they’ve done an amazing job in this unprecedented year and are gearing up to deliver for New Zealanders again this Christmas,” says Brendon Main.
Source : https://www.nzpost.co.nz/about-us/media-centre/media-release
5. PHLPost: Bringing local government services closer to their constituents
October 02, 2020
Local Government Units (LGUs) in the Philippines are now allowed to operate and maintain a Postal Station to cater to areas in dire need of postal and financial facilities needed for community development.
In partnership with the Philippine Postal Corporation (PHLPost), the local government will provide the facility and hire employees to set up Postal Stations in strategic areas such as communities/barangays or public markets subject to operational supervision of PHLPost.
The purpose of this project is to bring local government services closer to their constituents.
PHLPost would like to extend its market to as many settlements in the country pursuant to its universal service obligation of providing postal services to the public.
PHLPost will provide the marketing equipment and initial stocks as well as training of LGU personnel who will handle the Postal Station.
The LGU Post Office Operator must be authorized by the Sangguniang Bayan through a resolution to enter an agreement with PHLPost in setting up a postal station.
Deliveries of postal products, services and merchandise shall be requested by the LGU Post Office Operator to the designated PHLPost postage stamp custodian or Postmaster where the postal station is situated.
Still relevant in the communication industry, PHLPost is the duly designated national postal operator in the Philippines which has the manpower and the network capability to deliver mails, goods and payment services anywhere in the country and around the world. The postal service is an active member of the Universal Postal Union (UPU), the primary forum for cooperation among global postal sector players.
Source : https://postandparcel.info/127402/news/post
Formulated by UNI AproPost and Logistics Sector
1. “The next few years will see the largest modernisation in the history of UKRPOSHTA”.October 08, 2020.
2. Post Office announces next steps in embedding diversity as it celebrates Black History Month.October 07, 2020.
3. UPS opens logistics facility in Barcelona. October 06, 2020.
4. On time delivery of first-class mail, which contains ballots, plummets. October 05, 2020.
5. Two Additional Federal Courts Issue Injunctions Against Postal Service’s Policy Changes. October 02, 2020.
1. “The next few years will see the largest modernisation in the history of UKRPOSHTA”
October 08, 2020
The European Investment Bank (EIB) and JSC Ukrposhta, Ukraine’s national postal service provider, have signed a €30 million loan to continue the modernisation and digitalisation of the country’s postal services.
The loan, signed during the 22nd EU-Ukraine Summit, will allow Ukrposhta to start modernising its logistics network with three new sorting hubs, 20 postal depots and IT infrastructure.
EIB Vice-President Lilyana Pavlova said: “An efficient, affordable and modern postal service is crucial for faster, sustainable long-term economic development, as it unlocks new business opportunities, creates jobs and makes trade easier and more profitable. Together with our Ukrainian partners, the EIB will support the development of modern, digitalised postal infrastructure, benefiting the people and businesses of Ukraine alike. We are extremely proud of our continuing role in the economic and social development of Ukraine.”
Ambassador of the European Union to Ukraine Matti Maasikas commented: “At a time in which it is key to move to world-class standards as regards logistics and digitalisation, we are happy that the European Investment Bank is partnering with key public service providers such as Ukrposhta to ensure that they have the resources and capacity to offer reliable, modern and affordable services to all Ukrainians.”
With the loan from the EU bank, Ukrposhta will design and roll out a new, state-of-the-art parcel logistics network, reduce delivery times and improve the overall quality of the postal service for millions of Ukrainians.
General Director of JSC Ukrposhta Ihor Smilianskyi said: “The next few years will see the largest modernisation in the history of Ukrposhta. The EIB loan is a part of a major investment in postal infrastructure and a testament to the fact that Ukrposhta is a trusted and reliable partner. In total, as part of the strategy to upgrade the logistics network, we plan to attract about €100 million for the construction of eight sorting hubs and 62 regional depots. This will comprise loans from the EIB and the EBRD, as well as the company’s own investments. The new logistics centres will be fully automated and moved out of the city, which will significantly speed up the shipping process and improve connections as well as the environment in cities. Capacity will increase to three to four times its current levels. We will also provide separate storage space for online stores. Thus, orders made in the evening will go directly to the sorting line and will be at the postal offices of the recipients in the morning. Modernisation of the postal infrastructure will significantly change working conditions for the company’s employees: manual sorting will become a thing of the past, and the digitalisation of processes will attract employees to jobs with competitive salaries. In total, we plan to create more than 5 000 new jobs.”
An improved and affordable postal service with reduced delivery times will also improve conditions for doing business in the country (especially for small and medium enterprises), create infrastructure vital for faster development of e-commerce and pharmaceutical deliveries, and increase the efficiency of domestic and international supply chains.
It will also strengthen nationwide infrastructure critical for major emergencies such as the COVID-19 pandemic.
Ukrainian Minister of Infrastructure Vladyslav Kryklii commented: “We continue to create qualitatively new infrastructure in Ukraine and cooperate in this area with our permanent international partners for the implementation of large-scale investment projects. The signing of this guarantee agreement with the European Investment Bank will provide us with the opportunity to qualitatively modernise the existing logistics network of Ukrposhta, namely to create new sorting centres and purchase the necessary modern equipment for faster and more convenient shipments. Despite the crisis and quarantine, Ukrposhta continues to grow steadily and proves that state-owned companies can be successful and modern.
It became one of the first state companies to actively sell its non-core assets and channel the funds received for modernisation. We will continue doing our best and using all opportunities for the further development and improvement of the national postal service provider.”
The EIB has also provided a technical assistance package to Ukrposhta and assisted in the development of its investment programme, a crucial element for securing the ElB’s affordable financing. The technical assistance included a market analysis, the development of a business plan and the investment needs for the new logistic network.
Source : https://postandparcel.info/127605/news/sustainability
2. Post Office announces next steps in embedding diversity as it celebrates Black History Month
October 07, 2020
· Post Office announces next steps in diversity agenda, embedding principles and recommendations of the McGregor-Smith review
· Celebrating black colleagues now and through Post Office history over the course of Black History Month
As the business joins in celebrations around Black History Month, Post Office is announcing the next steps in making sure its future is an inclusive one as well as reflecting on the history of black colleagues in the business.
In the culmination of months of work from the Post Office Ethnic Minorities group and senior leadership, the business today announces a series of actions it will take to make the Post Office a better place to work for black, ethnic minority and all colleagues:
Gather and monitor data about ethnic diversity at the Post Office and use this data to measure the success of diversity initiatives
Set diversity targets, objectives and KPIs for the senior leadership team
Raise awareness of BAME issues in the business through training, discussions and by celebrating our diverse workforce
Continue to improve recruitment processes by actively identifying and eliminating unconscious bias
Change our processes to encourage diversity through ensuring fairness in reward and recognition and being open about our career pathways
Post Office looks back on its history working with black colleagues including Sam King, former Mayor of Southwark and long-serving Post Office member of staff who highlighted the difficulty of getting a job with the organisation as a black person in the 1950s – lessons which are still important in 2020.
The Black Cultural Archives host a rich selection of material on the history of black colleagues in the Post Office and how the postal service has impacted the lives of black people in the UK, particularly members of the Windrush generation, leaving home, friends and family for a new country but keeping in touch through the mail network.
Nick Read, Chief Executive at the Post Office, said:
“Black and minority ethnic colleagues have always played an important role in the Post Office and I’m determined that they play a bigger role in our future. That’s why I am committing to the five recommendations of our Post Office Ethnic Minorities Network, drawing from the McGregor-Smith report.
“Seventy years ago Post Office worker Sam King highlighted the issues black people were facing in the workplace and in wider society and this year’s Black Lives Matter protests show how the problems he faced are still affecting people today.”
Andrew Lewis, Chair of the Post Office Ethnic Minorities network, said:
“I’m pleased to see Post Office recognise Black History Month and rightly commit to a broad range of actions to recognise the value black colleagues bring to the business and continue our improvements on the diversity agenda.
“Post Office is relied on by people in every community in the UK and the black community is no different. That’s why it’s so important that we celebrate the contribution black people have made to the UK and the contribution we continue to make to Post Office as a business.”
3. UPS opens logistics facility in Barcelona
Shipping and logistics company UPS is to open a new hub in Barcelona, Spain, which it says has been designed to rigorous global certification standards for energy performance.
Working in conjunction with the Port of Barcelona, the company says the new building will be equipped with LED lighting, energy-efficient insulation and advanced package sorting technology that reduce energy consumption, while photovoltaic panels installed on the roof will reduce the amount of electricity drawn from the grid.
“At €40m (US$48m), this new Barcelona hub is one of UPS’s largest ever investments in Spain and will support an important junction in our cross-border European network,” said Elisabeth Rodriguez, country manager, UPS Spain and Portugal. “Trade with the European Union accounts for 67% of Spain’s exports and the hub’s strategic location at the Port of Barcelona, near El Prat airport and the French border, will encourage local businesses seeking to expand their customer base that selling across borders can be as straightforward as shipping at home.”
The company aims to open the facility in time for this year’s holiday peak shipping season. The hub covers an area of more than 24,000m² and has a sorting capacity of up to 22,000 packages per hour—more than 2.5 times the capacity of the current facility in Barcelona it will replace.
Built by CILSA – ZAL Port, Port of Barcelona and Merlin Properties, it forms part of a series of construction projects that real estate firm CILSA is developing in a new 270,000m² logistics park in the Port of Barcelona, along with more than 920,000m² of logistics warehouses in the prime Barcelona Logistics Area.
“With the addition of UPS to our portfolio, ZAL Port will become the most important logistics development in Southern Europe, bringing together all the world leaders of the logistics sector, with multiple developments of local, regional and international hubs completing the value chain of logistics”, commented Alfonso Martínez, CEO of ZAL Port.
Source : https://www.parcelandpostaltechnologyinternational.com/news/logistics
4. On time delivery of first-class mail, which contains ballots, plummets
October 05, 2020
(CNN)As states begin to mail ballots to voters, on-time delivery of first-class mail is plummeting across the US, according to new Postal Service documents submitted to a federal court.
The USPS documents show first-class mail's on-time delivery performance for the week of September 19 sank to 84.23%, a decline of 4.51 percentage over two weeks. That means the nationwide on-time delivery score for first class mail are nearing lows seen in July and August, when the agency experienced significant delays because of significant changes to postal operations.
The on-time delivery of first-class mail has taken on even greater significance in October because election mail, like ballots, are handled as first-class mail.
Of the 28 states that are sending ballots to voters, 43% of them are seeing the worst on-time delivery of first-class mail so far this year. All but two of those the states have seen their first-class mail's on-time delivery drop over the last two weeks.
The USPS blamed a portion of the drop in the last week to issues at the Great Lakes and Chicago Surface Transfer Center, but did not elaborate on what the problem was.
"To address this issue, support teams have been on site and are working with contracting teams to increase staffing and reduce cycle times," the postal service said in a statement.
The continued drop in on-time delivery threatens to undermine the USPS' and embattled Postmaster General Louis DeJoy's promises to Americans, Congress and to federal judges that the USPS will be able to handle the surge in mail from ballots.
Nationwide drop fueled by on-time delivery collapse in eastern US
Six of the seven USPS regional areas are seeing a drop in their on-time score for first class mail delivery. The nationwide drop is due largely to a profound and region-wide collapse of on-time first-class mail delivery in the eastern United States.
Although first-class mail on-time performance scores are cratering, the nationwide on-time delivery scores for marketing mail and periodicals increased from mid-July and early August. Periodicals are now delivered on-time 79.72% of the time, up from under 70% in early August. Marketing mail is on-time 88.68% of the time, up from 81% in early August.
The USPS did not respond to CNN's inquiries as to why only first-class mail on-time delivery had decreased.
Source : https://edition.cnn.com/2020/10/05/politics
5. Two Additional Federal Courts Issue Injunctions Against Postal Service’s Policy Changes
October 02, 2020
Two federal district courts have entered a third and fourth injunction against the Postal Service to undo the policy changes that it implemented over the summer and to protect voting by mail.
Judge Emmett Sullivan in Washington, D.C., found for a group of litigants led by the New York State Attorney General. The plaintiffs alleged that the policy changes implemented by Postmaster General Louis DeJoy over the summer were significant enough to be reviewed by the Postal Regulatory Commission (PRC).
The Court focused on removing sorting machines; operational changes to extra trips and late trips that the Postal Service itself described as a “pivot” to postal operations and culture; the ESAS pilot for city carriers; and communications suggesting ballots would not be handled as First Class Mail. The Court credited the testimony of various experts, including an APWU representative, that these changes had a meaningful impact on service for all types of mail, not only election mail. The Court concluded that these changes warranted the review and advice of the PRC.
In Pennsylvania, Judge Gerald McHugh entered an injunction against the Postal Service in a case led by the Pennsylvania Attorney General. Judge McHugh questioned the Postal Service’s approach to the changes it made and its failure to assess the impact of those changes on election mail. Judge McHugh borrowed from the proceedings and injunction in the case out of New York to enter a detailed order designed to improve communication of the processes developed by the Postal Service for handling election mail.
The Postal Service is actively taking steps to comply with the four court injunctions.
The injunctions reinforce the need for the Postal Service to take great care in making operational changes that effect its service to the American public. A vibrant public postal system is critical to the economic, social, and political life of the United States.
The APWU is working to preserve the Postal Service’s tradition of security, speed, and care for all users of the mail, no matter where they live, how much money they have, or how they vote.
Source : https://www.apwu.org/news