Royal Mail has proposed reducing second-class letter deliveries to every other weekday while maintaining its six-day-a-week service for first-class letters, as part of a plan to reform the company in response to financial struggles and changing mail volumes.
The move comes after Ofcom, the regulator, suggested that Royal Mail could decrease the number of delivery days from six to as few as three per week for all letters, prompting the company to devise its own proposals to address the challenges it faces.
Despite challenges such as declining letter volumes and financial losses, Royal Mail remains obligated to provide a one-price-goes-anywhere postal service, necessitating daily letter deliveries.
However, the proposed reforms aim to adapt the service to the current environment.
Under the new proposals, first-class letters will continue to be delivered daily, six days a week, while deliveries of non-first-class letters will occur every other weekday.
Parcels, which have seen increased demand and profitability, will still be delivered seven days a week.
The company anticipates that the proposed changes will result in between 7,000 to 9,000 fewer daily delivery routes within two years, potentially leading to job cuts.
However, it aims to minimize compulsory redundancies, with the expectation of fewer than 1,000 voluntary redundancies.
Martin Seidenberg, CEO of Royal Mail’s parent company, emphasized that the current universal service is no longer sustainable given the significant decline in letter volumes over the years.
The proposed reforms are viewed as a step toward achieving sustainability.
Royal Mail’s submission to the regulator seeks approval for the changes by April 2025, with the company stressing the importance of urgency in addressing the challenges it faces.
However, any modifications to the postal service’s operations will need to consider the impact on businesses and vulnerable consumers.
The proposals have drawn mixed reactions from industry stakeholders, with concerns raised about the potential impact on businesses and the need for a reliable and affordable postal service.
Meanwhile, Royal Mail has also addressed consumer complaints regarding charges for collecting post flagged as counterfeit, urging customers to purchase stamps from authorized retailers.
As discussions continue regarding the future of the postal service, Royal Mail remains focused on implementing reforms that balance operational efficiency with meeting the needs of customers and businesses.
