Royal Mail risks fine after worst delivery delays ever

Royal Mail boss Simon Thompson quit with a £700,000 payout following a war with unions. Credit: AFP

2022/23 results are even worse than during the pandemic, when the company had to contend with lockdowns and massive staff shortages due to Covid infections. In 2020-2021, it still managed to deliver 75% of first-class mail on time.

Second-class mail performance was higher, but still well below the minimum standards required by law. About 91% of second class deliveries were delivered on time compared to the target of 99%.

The numbers follow revelations in the Telegraph last week that «postal deserts» have sprung up across the country, leaving households short of deliveries for up to two weeks.

Grant McPherson, Royal Mail's chief operating officer, said: «We apologize to all customers who may have been impacted by our results during what has been one of the most challenging years in our history.»

Citizens Advice estimates that more than 12 million Britons have experienced a delay in emails over the past month.

Royal Mail has avoided fines in recent years as Ofcom considered outages from the Covid pandemic as extenuating circumstances. factor. However, the regulator said the same excuse would not be accepted this year.

Matthew Upton, chief executive of Citizens Advice, urged Ofcom to be tough on Royal Mail. He said: «Ofcom's investigation should bring Royal Mail under scrutiny, not only because of recent disruptions, but also because of the fact that four of the last five years have not completed the tasks.

“We know what a load Royal Mail is facing, but people need to be able to rely on their mail being delivered on time, including vital medical letters and urgent bills. Year after year, service disruptions have real consequences. It's just not enough.

“Now Ofcom must take stricter measures, including possible fines. Anything less risks sending the message that it's okay to let customers down all the time.»

Ofcom will now have to balance the size of any potential fine against the impact it could have on Royal's already dire finances Mail. Last year, the company reported an operating loss of £295m.

The last time Royal Mail was fined in 2018/19, the fine was only £1.5m. That same year, however, he missed his target by just 0.4 percentage points.

Mr. Thompson, a former Apple and Ocado executive, announced last week that he would retire with a to pounds sterling. 700,000 after two years running the Royal Mail.

He became the focus of trade union anger in a dispute when passions allegedly spilled over the picket line.

Mr Thompson's predecessor Rico Back also lasted only two years, again after a conflict with the main trade union of the company, the trade union of communications workers.