The end of days coming for the Royal Mail?

The strike by workers at Royal Mail Group Plc highlights the need for an alternative U.K. postal carrier, said the chief of TNT NV’s British unit, which is planning to roll out a competing service.

The chief executive of Royal Mail, Adam Crozier has expressed hope that further crippling postal strikes will be avoided through dialogue. Crozier , in a recent interview remained optimistic, forecasting that "common sense" would prevail when leaders of the Communication Workers Union (CWU) sit down to resume talks with Royal Mail management at a meeting sponsored by the TUC. Around 120,000 workers are set to stage a fresh round of strikes from Thursday of this week. The long-running dispute focuses around jobs, pay and modernization, which according to Crozier, has sparked of opposition by some postal workers, most of whom are based in London. A spokesman for the CWU accepted that modernization and improved efficiency would lead to job losses.

Meanwhile Nick Wells, chief executive of TNT Post was less than supportive of Crozier’s efforts to buy some time by stating that “What this strike does tell us is that our customers need choice which TNT will be able to provide in the future.”

Since the UK partially opened the postal business to competition in 2003, Royal Mail has consistently lost market share to TNT as well as the Business Post Group Plc. TNT, Europe’s second- biggest parcel company handles U.K. corporate mail and currently testing a door-to-door delivery service in Liverpool

Before TNT or Business Post can expand their services to homes and businesses, U.K. regulators must lift a ban on full competition with Royal Mail and offer tax equality. Currently, Royal Mail doesn’t charge value-added tax, while its competitors are obliged to.

The postal workers strikes have led to 30 million letters being delayed, equivalent to around 40% of an average daily postbag.

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Tags: Adam Crozier, British Economy, Business Post Group Plc, Communication Workers Union, CWU, Economy, Employment, Financial News, Nick Wells, postal workers strike, Recession, Royal Mail, Royal Mail Group Plc, TNT Post, TUC, UK Economy, UK government, UK Recession