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NEWS TOP STORY
Royal Mail Proposes Halving 2nd Class Delivery Greeting card industry voice is loud and clear The greeting card industry, largely through the GCA, has been a prominent voice in the media over the last few weeks, doing its utmost, and being very effective, pushing for a reliable and affordable postal service in light of watchdog Ofcom’s review for The Future Of The Postal Service. The GCA’s sustained and tenacious campaigning came good with coverage in newspapers, online news sites and radio stations sharing the association’s valid arguments. Coverage reached a crescendo following the unveiling of Royal Mail’s proposal to cut second class delivery to every other day in a bid to cut costs. However, Royal Mail’s submission to Ofcom also included that it will maintain the current six-day-a-week service for first class letters, which is an improvement on previously mooted plans to have Saturday deliveries scrapped. The plan was revealed after the GCA submitted an 25 page industry response to Ofcom’s review on 2 April, the same day stamp prices rose for the fourth time in two years, to £1.35 for first class, and the jump to 85p for second class, meaning that it now
costs the same as first class did two years ago – delivering an estimated £100m increase in income for Royal Mail. The association expressed the view that “the proposal of simultaneous significant price rises and service reductions will just unnecessarily accelerate British postal decline, trapping the country in a doom-spiral of increasinglyfrequent requests for further bailouts or reviews.” Sterling work by GCA PR agency Arena PR ensured the story was plastered across the media, including The Guardian, The Sun, The Independent, ITV, The Times, BBC, Sky News, Daily
Thortful words from Pip Heywood Online greeting card marketplace Thortful also responded to the Ofcom consultation and, following Royal Mail’s updated proposals, ceo Pip Heywood commented: “We were pleased to hear that first class days and speed would be protected under the RM proposal, but remain concerned about the lack of certainty of next-day prices long term. We have heard and seen worrying price brackets for next-day letters delivery in the Ofcom modelling and in discussion with the Royal Mail – Left: Pip Heywood, md of Thortful at the Ofcom London presentation.
Left: Every other day second-class delivery is among Royal Mail proposals. Below right: GCA ceo Amanda Fergusson has featured prominently in the media over Royal Mail. Below left: One of the graphics the GCA included in its submission to Ofcom.
we have to be realistic about what customers are prepared to pay for delivery of a lowcost, high emotional-value item. We worry there is a false or outdated sense of price elasticity between the Royal Mail and Ofcom and contradictory research findings aren't helping clarify the issue. I'm sure many GCA members are very concerned with the second class proposal – we know a key need for card sending is surety on when it will arrive. If Ofcom does accept Royal Mail's proposal here, we will need an acute customer education programme and even more scrutiny on RM’s reliability and quality of service to ensure consumer confidence isn't further eroded.”
Mail, Daily Express, and regional newspapers, while association ceo Amanda Fergusson has been interviewed on a number of radio stations, such as LBC, BBC Radio 5 Live, and BBC Radio Leicester. Amanda commented: “This issue has brought our industry together; it’s been great to have so much input and support from members as we raise our concerns to Royal Mail, Ofcom and the government. “It’s an important time for our voice to be heard – our industry needs an affordable, reliable and regular postal service. The GCA’s response to Ofcom is clear, we are concerned that more price rises and service reductions will accelerate a decline in the British postal service. Also, there are no underpinned service recovery plans or evidence of meaningful progress to restore the Royal Mail service to legallyrequired levels.” Royal Mail claims its latest plans would save it up to £300million each year, and admits there would be job losses but predicts “fewer than 1,000” voluntary redundancies.
On your Byk David Byk, ceo at Ling Design and GBCC and one of the GCA council members heavily involved in the submission to Ofcom, is among those who have not been backward in coming forward with his views of Royal Mail’s latest proposals: “It shows how inefficient and unbelievable they are if they say these reforms are only going to take out 1,000 workers. The Communication Above: Ling/GBCC’s David Byk on BBC Workers’ Union can’t believe this, nor can the share price. Breakfast last Stopping second class deliveries on a Saturday, reducing October talking about Royal Mail. second class to only two times per week, not disclosing the cost of first class so possibly putting it beyond everyone’s means so reducing demand for letters and effectively considering them as parcels, only having letters delivered when there’s more than one to go to each house so urgent post may never arrive – is so wrong. And they’re showing they don’t care about mothers by killing Mother’s Day and the greeting card industry!”
Public speaking Members of the public, as well as those in the greeting card community have been vociferous in sharing their outrage at Royal Mail and the need to improve its delivery service, not cut it. One Facebook post summed it up: “It has taken Royal Mail nine days to deliver a birthday card – with a first class stamp – from our son and grandson in Essex to my husband in Bedfordshire. It was correctly and clearly addressed with postcode, bearing the right postage, so I am stumped as to why it has taken so long. What on earth is the point of us splashing out on greeting cards and very expensive firstclass stamps if they can't deliver them in anything like the time they advertise?”
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