CWU Blames Postcomm For Royal Mail’s Demise

The Communications Workers Union (CWU) has hit out at Postcomm branding it ‘draconian’ and ‘incompetent’ and has blamed the regulator for Royal Mail’s demise.

Following the Government-commissioned review of competition in the postal market - focusing on the future of the universal service - the workers’ union has blamed Postcomm for stifling Royal Mail and creating a financial crisis for the UK’s biggest mail carrier.

CWU general secretary Billy Hayes says: “CWU is concerned that unfair competition rules and the draconian pricing and access regime brought in by Postcomm are undermining Royal Mail’s ability to deliver the universal service, by allowing competitors to cherry-pick profitable bulk mail contracts.”

He adds: “Postcomm has proved itself incompetent by bringing about a reduction in service provision and undermining the universal service through the way it implemented competition. It is now again acting beyond its remit by examining the ownership of Royal Mail. We expect the review team to stick to its brief and leave the ownership issue to government, which has pledged to keep Royal Mail in the public sector.”

The CWU calls for re-opening of the current price control and the ending of Royal Mail’s effective subsidy of the competition on access. The workers’ union also wants to introduce a price control mechanism that ensures the real cost of maintaining the universal service.

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