Source · Select Committees · Business and Trade Committee
Seventh Report - Royal Mail
Business and Trade Committee
HC 1045
Published 17 March 2023
Recommendations
12
Acknowledged
Para 47
We recognise the importance of the Universal Service Obligation in delivering a vital public service,...
Recommendation
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 …
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Government Response Summary
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
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13
Acknowledged
Finally, we put on record that the issues at Royal Mail covered by this Report...
Recommendation
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 …
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Government Response Summary
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
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Conclusions (9)
1
Conclusion
Acknowledged
Para 13
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 Summary
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.
2
Conclusion
Acknowledged
Para 14
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 Summary
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.
3
Conclusion
Acknowledged
Para 15
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 Summary
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.
4
Conclusion
Acknowledged
Para 16
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 Summary
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.
5
Conclusion
Acknowledged
Para 17
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 Summary
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.
6
Conclusion
Acknowledged
Para 25
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 Summary
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.
7
Conclusion
Acknowledged
Para 30
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 Summary
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.
10
Conclusion
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 …
11
Conclusion
Acknowledged
Para 46
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 Summary
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.