Royal Mail has announced a £500m investment plan to tackle late deliveries, which will see second-class post delivered every other weekday and scrapped on Saturdays from next month. The changes, piloted since July, will be rolled out nationwide in May following a deal with the Communication Workers Union (CWU) and Unite.
First-class post will continue to be delivered daily from Monday to Saturday, and parcel services remain unchanged, operating up to seven days a week. The company aims to meet new delivery targets set by regulator Ofcom by next May, after being fined a record £21m last October for missing targets.
Royal Mail's investment includes allowing 6,000 part-time postal workers to increase their average weekly hours if needed, funded by savings from changes to the universal service. The group recently raised stamp prices to £1.80 for first class and 91p for second class, despite criticism from Citizens Advice.
CWU general secretary Dave Ward welcomed the proposal but stressed the need for proper resourcing and workforce retention. He criticised Royal Mail's top-down management approach and urged the government to continue holding the company accountable. Royal Mail expects to improve first-class next-day delivery to 85% within nine months, reaching Ofcom's 90% target within a year.
Chief executive Alistair Cochrane acknowledged service shortcomings and pledged a 'step change' in performance. The overhaul comes a year after Czech billionaire Daniel Křetínský's EP Group completed a £3.6bn takeover of Royal Mail's parent company.
