Letter to Branches

No.348/08 / Ref: / Date: 6th May 2008

To: Branches with POSTAL Members

Dear Colleague

Government Review Interim Report

We have attached to this LTB a full copy of the Review Team’s Interim Report on the Impact of Competition on UK Postal Services and our press release.

This morning the Union attended a meeting with the Review Team and were given an overview of the report. The key message coming from the Review Team is that on all the evidence gathered so far, competition has clearly not benefited the public or small businesses. Moreover, that it poses a major threat to the very existence of Royal Mail’s Universal Service Obligation.

In our view the report supports many of the arguments made by the Union, including the fact that the Government’s policy on introducing competition earlier than the rest of Europe has failed.

The Union is studying the full text of the report and whilst generally welcoming its main conclusion it must be emphasised that the report only goes as far as identifying the problems. The Review Team have stressed that they are now entering a new phase of the Review, which will focus on what the solutions are.

Given there are many different stakeholders who have vested interests in this debate – many of whom who do not share the Union’s vision of a publicly owned Post Office – it is essential we continue to focus all our efforts on achieving the right solution for the public, CWU members and Royal Mail.

This is why the launch of our campaign,to coincide with the Government Review, is crucial.

The Government Review Team is presenting the report in more detail to the Postal Executive tomorrow.

Further information will be sent out in due course.

Yours sincerely

Billy Hayes Dave Ward

General Secretary Deputy General Secretary (P)

6May 2008

For immediate release

Competitionhas brought no improvement to postal customers - CWU welcomes announcement

The Communication Workers Union has welcomed the announcement by the government review team that "liberalisation of the UK postal service has produced no significant benefit for either households or small business."This statementunderlines what all industry experts, including the CWU, have already said.

CWU deputy general secretary Dave Ward said:

"This report is just an analysis of the problem, but the key now for the review team and for the government is to finally get the policy on Royal Mail right.

Currently, the policy and funding of Royal Mail makes its future untenable and damages the service to customers, the terms and conditions of workers in the industry and the future of the universal service.

This means that Royal Mail is preoccupied with managing decline rather than meeting customers’ requirements."

The CWU has submitted a report to the government review team today, reiterating that a solution must be found that gives the company a more sound financial footing, a less obtrusive regulatory frame work and clearer direction from the government on the company’s social obligations.

The public wants an innovative, publicly owned postal service that provides customers with the service that they want.

Notesto editors:

  • The CWU has consistently called for this review since the introduction of liberalisation into the postal market.
  • Postal liberalisation in theUK is some way ahead of other countries in the EU.
  • The CWU represents 165,000 postal workers inthe UK.

For more information contact:

Kevin Slocombe

Head of Communications

CWU

150 The Broadway

Wimbledon

SW19 1RX

07714 504413