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Royal Mail Privatisation.

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Initial post: 13 Sep 2013 10:39:03 BDT
What effect do you think this will have? Will we be left with no decent carriers and a host of Yodels.

Or will the extra investment mean we have a much better and more modern postal service for all our Amazon deliveries?

Posted on 13 Sep 2013 14:08:10 BDT
Nick Brett says:
I am 100% sure the customer will do okay out of this, but Royal Mail will go the way of other companies. They will seek to cost cut to offer competitive pricing and they will only do this by more automation, reduction in their existing cost base and head count reduction. This is the world I live and work in and I have no doubt about this at all.

In reply to an earlier post on 13 Sep 2013 17:17:07 BDT
Last edited by the author on 13 Sep 2013 17:17:23 BDT
Quiverbow says:
The customer won't do okay if they want to send somthing to the Shetland Isles, or somewhere equally remote. Who would want to take over that route and have next day delivery for the current price? Routes like that will see a marked increase in postage costs for the customer.

In reply to an earlier post on 13 Sep 2013 20:36:29 BDT
Nick Brett says:
I think they will, and will balance out the costs on the higher margin stuff. And the first pressure on margin will be absorbed by internal cost reduction before being subject to the bad publicity of putting it on the customer.
Don't think I am supportive of the privatisation (or not) but I do think the pain here will be suffered by the employees not the customers....

Posted on 16 Sep 2013 11:04:04 BDT
Prices have already gone up a lot recently and this will only go one way! Have you tried sending a package that weighs more than 1Kg recently? Royal Mail will push up prices in order to pay dividends to shareholders.

In reply to an earlier post on 16 Sep 2013 14:01:11 BDT
Nick Brett says:
Eventually, but politically they can't do it for a while, so first they will slash internal costs to maintain costs and only when there is nothing to slash will they turn to the customer....

Posted on 16 Sep 2013 14:23:46 BDT
Last edited by the author on 16 Sep 2013 14:25:39 BDT
They've already done it for packages/parcels. If you look on their website, a 1st class parcel over 1Kg costs £8.90 and 2nd class is not much cheaper at £8. If you try to send packages for example, for something you are selling on eBay, you will find that the cost has already gone up hugely and that's how they are making a profit.

A few years ago the same thing was under £2. Of course the only people who suffer are ordinary members of the public trying to send the occasional item; big companies like Amazon get big discounts for bulk mail deals.

Posted on 16 Sep 2013 16:03:02 BDT
[Deleted by the author on 24 Sep 2013 14:05:57 BDT]

In reply to an earlier post on 17 Sep 2013 06:37:48 BDT
Last edited by the author on 17 Sep 2013 12:20:01 BDT
NeuroSplicer says:
It's the same old scam: capitalism for the masses and socialism for the corporations.

And it works like this: unemployment is kept over 10% to ensure a steady stream of cheap (preferably part-time) workers. The social net is plucked to the last thread and everyone is left to fend for himself, as if he just sprouted from the ground and his ancestors contributed nothing to the infrastructure of the country.

Meanwhile, corporate profits remain private (not to mention scarcely taxed) whereas losses are summarily dumped onto the shoulders of the taxpayer with the "too big to fail / too essential to let go under" excuse.

In reply to an earlier post on 17 Sep 2013 09:14:20 BDT
[Deleted by the author on 24 Sep 2013 14:06:36 BDT]

In reply to an earlier post on 17 Sep 2013 09:39:36 BDT
Nick Brett says:
I agree, on a personal basis I think the Royal mail is part of the lifeblood of British society and this is the wrong thing to do. But as I have said above, I think for political reasons it will be a little while before there is a significant cost impact on customers (but it will come). There is also the issue of the hidden stuff, when water was privatised they sold off lots of assets and I suspect the newly privatised Royal mail will do likewise and they have a lot of buildings in valuable locations. As as example they will probaly seek to sell locations in expensive bits of London and 'consolidate' them somewhere cheaper.....

In reply to an earlier post on 17 Sep 2013 10:38:59 BDT
[Deleted by the author on 24 Sep 2013 14:06:05 BDT]

In reply to an earlier post on 17 Sep 2013 12:19:09 BDT
NeuroSplicer says:
What about the responsibility of the (elected or appointed) officials towards the citizens they are supposed to represent and serve, Liam?

When a public utility or service gets sold (usually at a fraction of its actual value - just compare it to a similar private company) it then gets cannibalized from any forgotten(?!) assets, left to operate with skeleton crews that cannot possibly offer the quality of service the public is now paying more for, and, when there is no more bone marrow to suck out, finally asks for a government (i.e. taxpayer's) bailout.

In other words, it is like selling our silverware for a pittance, then paying everyday in order to keep using them while their quality deteriorates, and finally having to buy them back all over again - at full price.

Corporations may be made up of people yet they are not people.
Because corporations are allowed far less civic responsibilities and can get away with bypassing or even totally disregarding the law.

In reply to an earlier post on 17 Sep 2013 12:41:47 BDT
[Deleted by the author on 24 Sep 2013 14:06:12 BDT]

In reply to an earlier post on 17 Sep 2013 12:50:13 BDT
Except this time it has been done by a Lib Dem Business secretary. This is the difference. Brilliant Cartoons on this from Steve Bell in the Guardian.

In reply to an earlier post on 17 Sep 2013 12:53:10 BDT
[Deleted by the author on 24 Sep 2013 14:06:25 BDT]

Posted on 17 Sep 2013 12:54:02 BDT
[Deleted by the author on 24 Sep 2013 14:06:18 BDT]

Posted on 27 Sep 2013 08:42:33 BDT
It is actually happening then, on 15th October Royal Mail will float on the stock exchange. While today, the union vote on strike action.

Posted on 27 Sep 2013 12:48:11 BDT
NeuroSplicer says:
Strikes are sooo 19th century.
Who actually cares if a public service goes on strike? And I am not talking about the citizens who will get inconvenienced. I am talking who of the puppets making those atrocious political decisions based not on what their constituents want but what certain special interests dictate.

In reply to an earlier post on 27 Sep 2013 12:57:58 BDT
I am old enough to remember the 3-day week in the 1970s and it had a big effect on everybody when the power went off and we had to use candles and coal fires in the winter, from when it got dark at about 16.00.

In this particular case though, (Royal Mail) the strike seems particularly futile, if it is actually going to come AFTER the service has been privatised and floated on the stock exchange.
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Participants:  5
Total posts:  20
Initial post:  13 Sep 2013
Latest post:  27 Sep 2013

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