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World.PostNe.ws

Report: Postal operators are expanding into financial services to become self-sufficient and curb their declining profits

London, April 29th, 2013 – Globally, postal services play a key role in providing access to basic communication and transaction services. The worldwide postal infrastructure has been shrinking for over two decades, in terms of both outlets and numbers of full-time staff. At the end of 2011, the total number of post offices stood at 662,701, of which 439,376 were staffed by officials of the designated operator and 223,325 were managed by people from outside the designated operator.

The traditional letter post service is under pressure from new technology, including the internet and (increasingly mobile) telephone services. Rising numbers of consumers and businesses are sending and receiving bills and invoices via the internet and making payments online or by telephone, instead of using post office services. The substitution of paper-based bills and statements, and bill payments by check, has been a key phenomenon for over 10 years.

With the decline in mail volume, post offices are looking at opportunities to support themselves and compete with other operators, both in the postal and financial sectors. Operators are becoming increasingly involved in providing or expanding their range of financial services, either to increase revenue or due to pressure from governments to increase access to basic financial services. With millions of people regularly visiting and using post offices, postal operators are looking to make additional use of their extensive retail presence and trusted brands. In 2011, financial services accounted for 11.7% of postal operator’s total income.

The financial services sector represents a significant opportunity for much-needed additional revenue for postal operators, either directly or through alliances with financial institutions. Many postal operators are also being urged to offer basic financial services such as payments, savings and microfinance to combat social and financial exclusion, particularly in poorer countries, or to better serve more remote geographical areas and isolated social groups. There is a significant potential for partnerships between postal operators and financial institutions, even in markets where postal operators and postal banks already offer a range of financial services. Alliances such as these could produce major financial rewards and deliver social dividends. For instance major banks in the UK such as Bank of Ireland, Barclays, Halifax, HSBC and Lloyds have formed partnerships with the UK Post Office to offer financial services.
Read more:
2020 Foresight Report: Post Office Financial Services

Postal workers’ struggle spreads across the world

U.S. Postal Service clerks, carriers, mail handlers and drivers have a lot in common with other postal workers in the capitalist world. In Great Britain, Germany, Spain, Greece, Kenya, Malawi, South Africa, India, Uruguay, Peru, Brazil, Canada and other countries, postal workers have gone out on strike in the last year to demand wage increases, to defend benefits and to oppose privatization.

Read more: Postal workers’ struggle spreads across the world – Workers World » Around the world » In the U.S. » Top » Workers World.

Royal Mail privatisation is being delivered behind closed doors

Dennis Skinner’s annual heckle at the state opening of parliament this year was a rallying cry for all those who worry about the little-discussed but imminent sale of Royal Mail.

Bolsover’s finest chose the occasion of the Queen’s speech to highlight plans to privatise her head. That particular aspect is perhaps symbolic but the wider impact of this privatisation will be anything but. Even his nemesis Lady Thatcher was loth to sell what many see as part of the fabric of our society and servant to our communities.

Read more: Royal Mail privatisation is being delivered behind closed doors | Mario Dunn | Comment is free | guardian.co.uk.

City Giants Face Royal Mail IPO Shut-Out

Some of the biggest banks in the City face being frozen out of the privatisation of Royal Mail amid demands from institutional investors to minimise the number of firms working on the deal.

I understand that ministers, who are being advised by Lazard, the independent investment bank, are likely to restrict to as few as five the number of banks picked to arrange a stock market flotation of the firm.

Read more: City Giants Face Royal Mail IPO Shut-Out.

Co-operative Group eyes interest in Post Office branches

The Co-operative Group is among the interested parties eyeing up opportunities to buy a number of Post Office branches.

The Post Office announced plans to franchise 70 of the branches and close some others. This has lead to staff staging a fresh strike today in a row over jobs, pay and branch closures.

The Post Office says the Crown offices – the larger branches usually sited on high streets – are losing £40m a year and has begun marketing its plan to close and transfer the business of the branches to retail partners.

It said it had received 150 expressions of interest including those from Asda, Tesco, Sainsbury’s and the Co-op, which currently operate a post office services.

Read more: Co-operative Group eyes interest in Post Office branches – Manchester Evening News.

Plans put 400 post offices at risk

Four hundred post offices could be put out of business if the Government moves social welfare payments to a purely electronic system, it has been warned.

Brian McGann, general secretary of the Irish Postmasters’ Union (IPU), claimed that forcing dole claimants to have money paid into accounts would decimate the traditional way of life.

Read more: Plans put 400 post offices at risk – BelfastTelegraph.co.uk.

Crown Post Office staff go on strike

Staff at some of the UK’s largest post offices are taking industrial action in a growing dispute over closures, franchising, jobs and pay.

The day-long strike on Tuesday will cover about 370 Crown Post Offices – 70 of which are due to be franchised or partnered with a retailer.

Crown Post Offices are the bigger branches found on high streets.

Read more: BBC News – Crown Post Office staff go on strike.

Royal mail sale is sign of Conservatives’ desperation, says Labour

Labour has accused the government of desperately pushing ahead with the £3bn “fire sale” of Royal Mail in order to “raise funds to cover the gaping hole in George Osborne’s failed economic plan”.

Chuka Umunna, the shadow business secretary, said there was a “distinct whiff of desperation” surrounding the privatisation of the world’s oldest postal service. He accused the government of rushing into a saleout of a desire to quickly reduce a £245bn overshoot in government borrowing. He warned that a rushed sell-off could lead to “sub-standard services and people being ripped-off”.

Royal mail sale is sign of Conservatives’ desperation, says Labour | UK news | The Guardian.

Former Harden sub-postmaster admits theft and fraud

A former sub-postmaster at Harden Post Office has been warned he might go to jail for stealing £15,401 and committing fraud to cover his tracks.Anthony Towler, 27, of Lane Ends, Bingley, will be sentenced at Bradford Crown Court on May 31 after pleading guilty to two offences yesterday.

Read more: Former Harden sub-postmaster admits theft and fraud From Bradford Telegraph and Argus.

New Zealand postal union fights NZ Post plans for three day delivery

“NZ Post is a public service, not a cash cow”
3 May, 2013

nzpostNew Zealand Post is a vital public service and there is no justification for reducing mail delivery to three days a week, says the union for postal workers, the EPMU.

The call follows claims from NZ Post that it would need Government subsidies unless it is allowed to slash mail delivery services in half.

EPMU national industry organiser Joe Gallagher says there is no need for drastic cuts to delivery.

“Any talk about subsidies at this stage is pure speculation and scaremongering. NZ Post is actually returning a profit and will continue to do so for some time even without any changes.

“We recognise NZ Post faces serious commercial pressures, but current mail volumes do not justify the drastic and damaging cuts that are being proposed. This proposal only makes sense if you believe NZ Post exists purely to return a profit.

“NZ Post is not a cash cow for the Government. It is a vital public service and any move to reduce its social obligations will face resistance from the Kiwis who rely on it to stay connected with their families, their communities and their customers.

“We are calling on the Government to listen to communities, keep NZ Post’s social obligations in place and commit to wider public consultation on any future changes.”

The EPMU’s submission to MBIE over changes to the Deed of Understanding is available at: http://www.epmu.org.nz/assets/Post/EPMU-Submission-NZ-Post-2013.pdf

A selection of quotes from the more than 250 public submissions received by the EPMU is available at: http://www.epmu.org.nz/assets/Post/Public-submissions.pdf