Royal Mail has announced a further £120 million investment as part of the company’s continuingmodernisation programme to improve and upgrade postal services for consumers and businesses in the
UK.This announcement follows a series of postal strikes taking place at Royal Mail over the lastweeks due to the latest industrial dispute between the postal operator and the CommunicationWorkers Union (CWU). A new wave of strikes is expected to begin this Saturday and could causeweek-long delays in deliveries across the country. However, Royal Mail didn’t disclose whether thenew investment is directly related to the recent developments with thousands of postal workersparticipating in the industrial action after Royal Mail had turned down a CWU for a three-month nostrike deal.
The latest investment is earmarked for new equipment for delivery postmen and women and addsto more than £800 million which has already been spent on the modernisation of the business. RoyalMail is investing a total of £2.1 billion in transforming the company and is thus implementing itsplan.
The new equipment will ultimately be introduced in all delivery offices, Royal Mail said. Itincludes almost 9,000 more handheld tracking devices on top of the 27,000 already purchased to helptrack deliveries more precisely. In addition, 11,500 new vehicles will be purchased to make surethat postmen and women are able to take everything for their round with them without the need to bereplenished mid-way through the day. Furthermore, almost 2,400 electric powered trolleys, 4,000high capacity trolleys and 24,000 lightweight trolleys will be introduced to take the weight offpostmen and women’s backs and help them carry letters, packets and parcels safely and efficiently,the company added. “As a result, postmen and women will be better able to handle the increasedproportion of packets and parcels in the mail bag – generated by the internet shopping market – ina safe and efficient way.”
Mark Higson, Royal Mail Managing Director, said, “We’re investing for a positive future, bothfor our customers and our people. We know that traditional letter volumes are now falling by up to10% annually, and we’re absolutely focused on the need to create an operation which gives us thevery best chance of winning packets and parcels business in an intensely competitive marketplace.We’re hugely increasing our ability to track the delivery of goods and internet shopping orders andwe are very determined to create the modern, efficient business that meets our customers’ needs andexpectations.”
“A successful future for Royal Mail, which protects as many jobs as possible and secures theone-price-goes-anywhere universal postal service, depends on making investments quickly and oneveryone in the company playing their part in making change happen throughout our operation,”Higson added.
Since 2007, Royal Mail has actively pressed ahead with modernisation. It has created one ofthe UK’s largest corporate WiFi networks with 27,000 handheld tracking devices to record electronicsignature on delivery for tracked mail. The postal company has also upgraded its 138 integratedmail processors in mail centres across the UK and started expanding further 90 machines andinstalling different kinds of mail sorting machines.
“Within three years, Royal Mail will have 900 automation machines and will be sorting 75% ofthe addressed mail to the exact door to door sequence in which our postmen and women deliver,” thecompany confirmed. “This builds on the business’s investment in upgrading and installing technologyduring the first phase of the on-track modernisation programme which increased our walk sortingcapability to more than 80% of the mail we handle,” Royal Mail said adding that improved efficiencyacross more than 34,000 individual walks in line with the 2007 Pay and Modernisation agreement.
Higson concluded: “We’re continually improving efficiency – by modernising working practicesand introducing the equipment to make every collection and delivery route more cost effective – sothat we can offer competitive prices that will win and retain business. Royal Mail, rightly, doesn’t take any business for granted, and we know that competitors are chasing every packet and parcel ina fiercely competitive marketplace.”
