Recommendations & Conclusions
13 items
1
Conclusion
Seventh Report - Royal Mail
Acknowledged
It is clear to us that, despite statements in evidence on 17 January by Simon Thompson, the Chief Executive Officer of Royal Mail, PDA data has been used to track the speed at which postal workers deliver their post and, subsequently, for performance management, both explicitly in disciplinary cases and …
Government response. Royal Mail conducted a review of how its policies are being applied locally to ensure consistent implementation and will regularly remind employees about responsible data use and USO delivery.
Department for Business and Trade
2
Conclusion
Seventh Report - Royal Mail
Acknowledged
We acknowledge that there may be a case for Royal Mail to use PDA data to achieve consistent and effective performance, as long as it is undertaken within the terms of established policies and following consultation with the workforce.
Government response. The government stated that it is not their policy to prioritise parcels over letters, and that following the Committee’s Report, they took the decision to conduct a review of how their policies are being applied locally.
Department for Business and Trade
3
Conclusion
Seventh Report - Royal Mail
Acknowledged
Mr Thompson asserts that the evidence we presented to him was due to failures to apply company policy. However, we do not believe that such widespread errors in applying company policy could happen without the direct or indirect approval of management at Royal Mail.
Government response. The government stated that it is not their policy to prioritise parcels over letters, and that following the Committee’s Report, they took the decision to conduct a review of how their policies are being applied locally.
Department for Business and Trade
4
Conclusion
Seventh Report - Royal Mail
Acknowledged
If Mr Thompson’s assertion is correct—namely, that there are errors in applying company policy at Royal Mail—then these would appear to be widespread, and we can only conclude that the level of management oversight at Royal Mail is negligent and warrants a formal review by the Board.
Government response. The government stated that it is not their policy to prioritise parcels over letters, and that following the Committee’s Report, they took the decision to conduct a review of how their policies are being applied locally.
Department for Business and Trade
5
Conclusion
Seventh Report - Royal Mail
Acknowledged
The Committee is concerned by the discrepancies between stated policy and the actual use of PDA data at Royal Mail for individual performance management. We therefore invite the Information Commissioner to review the legal basis for the collection, storage and use of this data and to report their findings to …
Government response. The Information Commissioner acknowledges the request to review PDA data use at Royal Mail, stating that preliminary inquiries have been made and a response will be provided by the end of 2023.
Department for Business and Trade
6
Conclusion
Seventh Report - Royal Mail
Acknowledged
We conclude that, despite Mr Thompson’s statements to us on 17 January, which he qualified on 22 February, Royal Mail has deprioritised delivery of letters as a matter of company policy. While this might have been a legitimate approach at times during the pandemic, to handle exceptional volumes of parcels …
Government response. The government stated that it is not their policy to prioritise parcels over letters, and that following the Committee’s Report, they took the decision to conduct a review of how their policies are being applied locally.
Department for Business and Trade
7
Conclusion
Seventh Report - Royal Mail
Acknowledged
We believe that Royal Mail has systemically failed to deliver against parts of its Universal Service Obligation. We recognise the challenges of both the pandemic and ongoing industrial action, but the evidence we have suggests this systemic failing has been taking place before, between and during these events.
Government response. The government stated that it is not their policy to prioritise parcels over letters, and that following the Committee’s Report, they took the decision to conduct a review of how their policies are being applied locally.
Department for Business and Trade
8
Recommendation
Seventh Report - Royal Mail
Accepted
We therefore call on Ofcom to undertake an enforcement investigation into Royal Mail’s delivery of the USO and to report to this Committee by the end of 2023. In doing so, we encourage Ofcom to meet with postal workers from across the country to take evidence on verbal briefings to …
Government response. Ofcom has opened an investigation into Royal Mail’s compliance with its quality of service performance targets during 2022/23, will use statutory information gathering powers, and expects to complete and publish the outcome by the end of 2023, reporting back to …
Department for Business and Trade
9
Recommendation
Seventh Report - Royal Mail
Accepted
Lastly, we call on the Royal Mail board to reflect on its decision to exclude the delivery of the USO from the long term pay and incentive structure for its senior managers and to reconsider whether this is the right approach. We encourage the Royal Mail board to add delivery …
Government response. Royal Mail states that the delivery of the USO is already included in the annual Royal Mail Short Term Incentive Plan (STIP) for all managers as one of five bonus metrics.
Department for Business and Trade
10
Conclusion
Seventh Report - Royal Mail
We are in little doubt that the blanket approach by Royal Mail in not paying sick pay during periods of strike action will have been unduly harsh on those who were genuinely unfit for work and who may, through no fault of their own, have been unable to provide the …
Department for Business and Trade
11
Conclusion
Seventh Report - Royal Mail
Acknowledged
Royal Mail is a brand with a long and proud heritage, and postal workers have been rightly celebrated as key workers. We want to see Royal Mail on a firm and sustainable footing for the future. However, it is clear that the landscape has changed a great deal since the …
Government response. Royal Mail acknowledges the shift in demand from letters to parcels and states that they have asked the Government to review the Universal Service Obligation (USO) and requested a move to a five day a week letter service.
Department for Business and Trade
12
Recommendation
Seventh Report - Royal Mail
Acknowledged
We recognise the importance of the Universal Service Obligation in delivering a vital public service, and we hope that Royal Mail seizes the commercial opportunities available to it in accessing every household across the country on six days of the week. We call on the Government to formally engage with …
Government response. The government acknowledges the importance of the Universal Service Obligation and states that the Minister discusses related issues with Royal Mail, but emphasizes that Ofcom is primarily responsible for ensuring a financially sustainable universal service.
Department for Business and Trade
13
Recommendation
Seventh Report - Royal Mail
Acknowledged
Finally, we put on record that the issues at Royal Mail covered by this Report have caused the Committee great concern. Regarding the current industrial dispute, we call on the board of Royal Mail and the Communication Workers Union to seek to resolve the outstanding issues as quickly as possible. …
Government response. The government acknowledges the Committee's call for resolution and states that Royal Mail and the CWU have reached a negotiators agreement, with the CWU recommending its members accept the proposed agreement.
Department for Business and Trade