Royal Mail plans to cut around 700 manager jobs to “simplify and streamline operational structures.”
In a trading update for the last three months of 2021 Royal Mail said the move would save around £40 million, with around £30 million of that in 2022-23.
The firm has been hit with high levels of absence due to covid and this has resulted in complaints about delays.
Covid absence rates increased over Christmas and into early January 2022 to peak at around 12% (c. 15,000), double pre-COVID levels.
The trading update says: “This has resulted in increased costs and impacted quality of service in some areas of the country. We are providing targeted support to the local offices most affected by elevated absence.
“More recently absence has begun to reduce to below 10%. Our postmen and women are continuing to work incredibly hard, as they have done throughout the pandemic, and we thank them for all of their efforts and determination.
“Overall revenue performance was broadly in line with our expectations. The COVID-19 pandemic has resulted in a structural shift, with a permanent step up in the level of domestic parcel volumes compared to pre-pandemic levels.”
The firm says the Omicron wave is spreading across Europe and placing pressure on the availability of drivers and in-house labour in operations. Despite this Royal Mail says it has “been able to manage these challenges successfully, with good quality maintained across the GLS network during the peak season.”
Outlining plans for the restructure, the update says: “As a next step, subject to consultation, we intend to further simplify and streamline our operational structures to ensure an improved focus on local performance and devolve more accountability and flexibility to frontline operational managers.
“We are engaging with our unions on the proposals, which we expect will lead to a reduction of around 700 managers and deliver an annualised benefit of around £40 million, with around £30 million in FY 2022-23.
“To deliver this programme, we expect to incur a restructuring charge of around £70 million in Q4 2021-22, subject to consultation. The proposed changes in management structure are subject to statutory consultation with Unite/ CMA, and additionally we will work with the CWU to ensure that the impact of any proposals remains in line with our existing agreements.”
Another step in the downward spiraling of postal deliveries, that can’t compete.
Let me get my bugle, time to play “the last post”
So that was why one of my Christmas cards took 11 days to get to me! Downsizing staff for greater efficiency usually means spreading their workload amongst the remaining staff!
Are these sacked managers going to be made new postmen? Doubt it. Service is poor now and will get worse over time. Another company more interested in profit to share holders than a decent service.
I find the Royal Mail’s service generally excellent (I do miss the 2 deliveries per day and Sunday collection though!).
How many letters do you send and receive on a daily basis that requires two deliveries and a Sunday collection ? ? ?
No less than I did 40 years ago.
Outlining plans for the restructure, the update says: “As a next step, subject to consultation, we intend to further simplify and streamline our operational structures to ensure an improved focus on local performance and devolve more accountability and flexibility to frontline operational managers. Or in English-we want to sack 700 people for financial reasons, while gaslighting our customers that the service will improve as a result.
How many people send letters, How many people sent Christmas Cards. The modern era send e-mails or text messages with emojis wishing family and friends happy Birthday or Christmas. One message on social media reaches all friends throughout the world and country and their response is instantaneous. I agree that there are still many that do not have computers or mobile phones. This same generation had to get used to decimalisation as we will have to with other forms of communication.
Rather like banking we have been forced to open bank accounts rather than collect our pensions in cash from the Post Office. Yes we are being forced into a cashless society.
I would rather see less bureaucracy fewer managers rather than a top heavy system as we have in the health service.
I have computers and a mobile phone, but I still send Christmas cards and write letters, just like most of the other people I know.
£70 million put aside for making 700 staff redundant. Averages £100k per person.
Nice pay offs.
as was pointed out earlier all of these institutions are top heavy with jumped up titles and managers of this that and the other , the whole of Royal Snail needs a shake up. the price of stamps goes up and the service goes down , public services cannot keep using covid as a get out of jail card. the post seems to be delivered as and when it suits them.
Real World
You are spot on, couldn’t agree more.