May 22, 2008

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Second Strike Ballot At Post AG: 82.7 percent Vote In Favour Of Negotiated Settlement - May 22, 2008
[UNI-Network.org.]82.7 percent of ver.di members at Deutsche Post voted in favour of accepting the settlement negotiated on 30 April. As a result, the contractually agreed provisions can come into effect. “We have achieved a very good agreement which shows the exceptional cohesion of our members. That is precisely what makes us so strong”, says Andrea Kocsis, deputy ver.di President. The union had balloted its members on the negotiated settlement on 13 – 15 May, after more than 93 percent had voted in favour of unlimited strike action during the first ballot.

After a 4 week warning strike, ver.di succeeded in obtaining the permanent maintenance of the 38.5 hour week for all employees, a non-dismissal clause that will remain valid until 30 June 2011, and a 4 percent pay increase as of 1 November 2008 with a further 3 percent increase as of 1 December 2009. Furthermore, short-time working has been taken off the agenda completely. Immediately after the ballot results were in, the collective bargaining committee accepted the offer, thus putting a formal end to industrial action at Deutsche Post AG.


Business Post Plans Faster Letter Delivery - May 22, 2008
[Financial Times.]Business Post, the parcels and postal delivery group, is to launch a letters service in the summer that will guarantee next-day delivery anywhere in the UK.

Customers will send letters over the internet to UK Mail, a Business Post subsidiary, which will print them in color at depots close to the destinations. The company will then put the letters in envelopes and hand them over to Royal Mail for delivery over “the final mile”.

The iMail service could reduce the carbon footprint of a letter by up to 80 per cent, Business Post said. It will also appeal to big corporate users that are keen to reduce emissions produced by their businesses.

“This will be our first foray into the first-class postal market,” said Guy Buswell, chief executive.

“It will also allow us to offer our service to consumers and small businesses whose mailing requirements are too small for our existing services.”

UK Mail has doubled its share of the British postal market for the second year running. It collects and sorts about 11 per cent of mail before passing it on to Royal Mail for delivery to homes and businesses around the country.

The group’s shares rose 30p to 305p after it reported pre-tax profit up 45 per cent in the year to March 31, from £9.8m ($19.3m) to £14.2m.

Revenues from its mail operation rose 52 per cent on the previous year, to reach almost 38 per cent of the group’s total.

Business Post plans to change its name to UK Mail at the general meeting in July in recognition of the growing importance of the division.

The parcels division, which still accounts for more than half of revenues and profits, continued to suffer from the loss last year of a contract with Federal Express.

Excluding the FedEx contract, revenues rose 2 per cent and margins increased from 7.8 per cent to 8.6 per cent.

Earnings per share were up 40.6 per cent, from 12.8p to 18p. The final dividend of 10.8p is unchanged, as is the full-year dividend of 17.2p.


Postcomm Agrees Changes To Royal Mail's Retail Compensation Schemes - May 22, 2008
[Press Release.]Postcomm, the independent regulator for postal services, today agreed Royal Mail’s proposed changes to its retail compensation arrangements for lost, damaged and delayed mail.

The key changes, which will come into effect on 1 August 2008, are:

For items posted with Royal Mail which have no intrinsic value (for example a 1st or 2nd class letter), or where a claimant cannot provide proof of posting, there will be compensation for loss, damage and delay of a minimum of six 1st class stamps (currently worth £2.16);

. For items that have an intrinsic value, with proof of posting with Royal Mail and proof of value (such as an invoice or receipt) customers will be entitled to a postage refund plus compensation for actual loss up to the value of the item, or 100 1st class stamps (currently £36), whichever is the lowest;

. compensation for delayed retail mail will become payable one day earlier than at present – three working days after the due delivery date instead of four;

. £5 and £10 payments for delay and substantial delay will be discontinued, except for Special Delivery Next Day (not posted on account);

. Redirected retail mail will now be eligible for compensation for delay; and

. users of the Articles for the Blind service will now be able to claim compensation for loss, damage and delay.

The new compensation arrangements simplify and align the processes for making a claim, the evidence required to support a claim, and the compensation payments themselves.

Royal Mail estimates that the new arrangements will result in a slight overall increase in the total compensation payable under the retail scheme.


Royal Mail: Evidence to The Independent Review - May 22, 2008
[Press Release.]Royal Mail has now submitted its second set of evidence to the Independent Review of the UK Postal Services Sector.
Management Summary

Royal Mail: Ecodriving Can Deliver Carbon Savings - May 22, 2008
[Press Release] A carbon saving equivalent to taking three million cars off the road could be achieved by simply encouraging drivers to shift gear and adopt a more environmentally-aware approach to driving, a new study revealed today.

Despite the potential cash and carbon savings, drivers still lack awareness of environmentally-friendly driving practices, called ecodriving, according to a report by Forum for the Future and commissioned by Royal Mail.
The report, Fuelling Green Driving, reveals that there is still a long way to go to encourage consumers and employers to embrace ecodriving as nearly half the population (43 per cent) dont know what it is. Furthermore, 32 per cent of people surveyed said they have heard of it, but have never even been tempted to try it.

Recognising the benefits, Royal Mail has launched a company wide awareness programme to help its 180,000 people switch to greener driving, whether for social or work driving. And almost 1,000 Royal Mail drivers have received in-depth classroom training to help them adopt more environmentally-friendly motoring practices with plans to train a further 2,000 in the coming months.

The report highlights that only one per cent of the population has received ecodriving training from an instructor. Moreover, a lack of information is a major barrier to ecodriving as 59 per cent of people require more information about the steps they need to take to encourage them to drive in an environmentally-friendly way. This was particularly prevalent among women where this figure rose to 72 per cent.

The Forum for the Future report also makes a number of recommendations for ministers, employers and car manufacturers including:

- Serious investment in a high-impact advertising campaign to change attitudes towards driving among both fleet and private drivers
- Short duration ecodriving lessons
- Specialist training for van drivers
- Forecourt advertising campaigns spearheaded by fuel companies in accordance with their obligations under the Energy Services Directive
- A change in the way fuel is bought by company drivers to realign incentives in favour of a more fuel efficient approach to driving
- Prominence in the modified driving test to ensure drivers learn and remember green driving techniques
- Technical developments to encourage drivers to drive more efficiently. New technologies that could be adopted include, shift-gear and tyre pressure indicators, onboard computers and speed-limiters
- Greater consistency between ecodriving advocates to help ensure credibility
Paul Tolhurst, Network Director at Royal Mail, said: "This research shows that green driving could make considerable savings to the UKs CO2 emissions despite being relatively simple and inexpensive.

"All of Royal Mails 180,000 staff will receive advice and tips which will help them switch to greener motoring. The training is intended to help our people drive in a more environmentally friendly way, both at work and at home."

Royal Mails awareness programme for its people includes the following top tips:

- Smoother driving (avoiding harsh acceleration and heavy braking)
- Defensive driving (anticipation of road conditions and other users)
- Not over-revving the engine
- Appropriate speed selection (you could be using up to 30% mre fuel at 70mph than at 50mph)
- Appropriate gear selection (a vehicle travelling at 37mph in 3rd gear uses 25 per cent more fuel than it would at the same speed in 5th gear)
- Not leaving the engine running when stationary (if stationary for more than 2 minutes switch off)
- Driving gently away as soon as possible once you have started the engine from cold (it warms up more quickly, reducing consumption, emissions and engine wear)

Bob Saynor, author of the report on behalf of Forum for the Future, said: "The Government, car manufacturers and employers need to act now to tackle rising transport emissions in the UK.

"Much work has already been done. But it is clear that there is a long way to go to educate the public and business about ecodriving and greater investment is now needed to make sure people adopt green driving techniques."

He added: "Businesses that employ a large number of people and have big fleets like Royal Mail must also lead the way in driving this change and should encourage staff to drive in an environmentally friendly way."

The report cites long term studies that have demonstrated a seven per cent cut in emissions from eco-driving, which by category of vehicle, equates to the following reduction in emissions:

- Passenger cars - 4.9 million tonnes of CO2
- Light duty vehicles - 1.8 million tonnes of CO2
- Buses and coaches - 0.25 million tonnes of CO2
- Heavy goods vehicles - 2.0 million tonnes of CO2

The overall impact would be equivalent to taking over three million cars off the road. With motorists typically spending ?1,300 a year (and rising) on fuel, the average 7 per cent gain in fuel efficiency from ecodriving will yield cash savings of over ?90 a year, and an achievable 10 per cent efficiency gain will save ?130 or more.

Report

Austrian Post Acquires Belgian Pharmaceutical Logistics Company - May 21, 2008
[Press Release] HSH Holding: Revenue of EUR 18m – 5m parcels – 180 employees New subsidiary of the trans-o-flex Group – Austrian Post continues its expansion drive.

The Austrian Post Group acquired a 100% shareholding of HSH Holding B.V.B.A. based in Belgium. HSH serves as a holding company for its two subsidiaries MIT N.V. and Distra N.V., specialising in non temperature-controlled pharmaceutical logistics, particularly in the health care segment.

In the 2007 financial year, HSH generated total revenue of about EUR 18m, with a work force of 180 employees. The geographical focus of its business activities, featuring 1.7m shipments or correspondingly 5m parcels, is the Benelux countries. Accordingly, following the acquisition of “Van Osselaer Pieters Colli Service“ (VOP) in Belgium and “Dedicated Distribution Services“ (DDS) in the Netherlands from DHL Express in 2007, Austrian Post is further expanding its position in the Benelux countries. These markets are closely linked to Austrian Post’s specialty logistics operations in Germany.

The acquisition of HSH Holding further strengthens Austrian Post’s foothold in the health care and pharmaceutical logistics niche.



Business Post Profit up 45 percent, Outlook Healthy - May 21, 2008
[Guardian.co.uk] Britain's Business Post Group Plc posted a 45 percent rise in annual profits on strong growth in its UK Mail unit, sending shares higher on Wednesday, and said the start of the new year had been encouraging.

The bulk and parcel delivery company, which collects some 1.7 billion mail items per year, said pretax profit for the year ending March 31 rose to 14.2 million pounds ($27.9 million) from 9.8 million on revenue 10 percent higher at 359 million.

The group's earnings per share jumped 41 percent to 18 pence, while the final dividend remained flat at 10.8 pence.

A poll of analysts by Business Post (BPG) forecast average profit of 14 million pounds on revenue of 357 million.

By 0957 GMT shares in BPG were 11.2 percent higher at 305-3/4 pence, on what Seymour Pierce analyst Kevin Lapwood described as "positive momentum in all areas". BGP's UK Mail, the leading alternative to the state-owned Royal Mail, saw sales rise 52 percent to 137.3 million pounds thanks to a number of new contract wins during the year, including Virgin Media and MBNA.

Analysts at Evolution said the unit's performance was "reassuringly unsurprising". Royal Mail recently said it would need a cash injection due to the declining market and growing pension problems but the postal regulator has called for private equity to be allowed to buy into the group, which last year received a 3.9 million rescue package from the UK government. Guy Buswell, BPG's chief executive, told Reuters that Royal Mail "should be restructured in some way because it's in our interests that we have a healthy and financially viable Royal Mail -- they deliver for us."

The group's parcels business, which last year underwent a restructuring and cost-cutting programme, saw revenue fall 2 percent to 179.8 million pounds, largely because of a poor performance from its business-to-consumer arm, BPG said.

Buswell said efficiency initiatives in the parcels unit were "ongoing" and that BPG is "making progress towards" achieving parcels margins of 10 percent.

Specialist services, made up of the group's palletised goods delivery and same-day courier activities, delivered flat revenue of 41.5 million pounds after a year of change and the introduction of a new management team. The division also won a new contract from France Telecom-owned Orange.

BPG's courier business saw sales fall 10 percent to 11.1 million but Buswell said the division would focus on its larger customers going forward, "many of which are in the financial services sector".

The group, which has a fleet of over 1,000 vehicles and 700 customers, now has about 11 percent of the British postal market, according to Buswell, who said BPG is "in a good place in all businesses".



Pos Indonesia To Assist In Cash Aid Cards Distribution - May 21, 2008
[Mustaqim Adamrah, The Jakarta Post.]State-owned postal service company PT Pos Indonesia says it will directly deliver cash assistance to low-income families.

The company's operational district IV deputy head, Bangbang Suhendar, said Monday that PT Pos Indonesia would distribute cards to targeted families in each subdistrict.

"We'll cooperate with the subdistrict offices to ensure the program runs effectively," said Bangbang at City Hall after a meeting with district and subdistrict heads Monday.

To help the country's 19.1 million low-income households cope with planned fuel price increases, President Susilo Bambang Yudhoyono has instructed Rp 14.1 trillion (US$1.55 billion) in direct cash assistance be disbursed.

Under the scheme, qualified households will receive Rp 100,000 per month in compensation for the planned price increase.

In 2005, when a similar assistance scheme was introduced, the 267 subdistrict offices were responsible for card distribution, with the postal company acting as a payment agent for the disbursement of the money.


Poste Italiane To Weigh Joining Alitalia Consortium - May 21, 2008
[Deepa Babington, Reuters.]State-owned mail group Poste Italiane could consider joining an Italian consortium to rescue Alitalia if doing so makes commercial sense, its chief executive officer told Reuters.

Poste Italiane relies on 16 daily flights, some operated by Alitalia, to transport its mail, and Italian media have suggested it might be interested in the airline's cargo business. Poste operates its own cargo carrier Mistral Air.

CEO Massimo Sarmi, however, cautioned that the postal group, which itself is among state assets that could be privatised, has not been yet been approached to join the proposed group and that it was still too early to decide on it.

He stressed that any decision to pick up pieces of the cargo business or to be part of a consortium would be based on business considerations. "We'll see ... if there is an opportunity or not for us for growing," said Sarmi. "I don't exclude in principle to have talks, maintaining in my mind the priorities I have laid out ... and if there is room for expanding in some areas, why not? I say it's an opportunistic approach. It's business." Sarmi said finding a plane or crew to deliver mail was not difficult, but the tricky part was in ensuring that the cargo flights were filled to capacity so as to make commercial sense.

"We have to maintain the efficiency of logistics (of delivering mail), and we're going to pay attention to what happens in the market," he said. Poste Italiane itself has long been considered a leading candidate for privatisation.

But unlike state-controlled Alitalia, which is on the verge of bankruptcy, Poste has reversed decades of losses thanks to a strategy of diversifying out of the slow-growth mail business into more lucrative sectors like banking and telecoms.

The group reported a 25 percent rise in annual profit earlier this year, and Sarmi said he estimated it has an equity value of about 14 billion euros ($21.80 billion), double that of a few years ago.

In the event it is privatised, Sarmi reiterated that he prefers a stock market listing of the Poste Italiane group as a whole, rather than just its banking division.

But before deciding on whether to list the company on the market, Italy's new centre-right government must decide this month whether to renew Sarmi's term at the helm of the group.

"I'm keeping my fingers crossed," he said, adding that he had not yet received word on what the government had decided.


USPS Reinforces Commitment to Greener Future - May 21, 2008
[Press Release.]The U.S. Postal Service chose the state with the most progressive environmental record in the nation as the place to announce the creation of a corporate vice president of sustainability.

Postmaster General John Potter today named Sam Pulcrano, a 33-year Postal Service veteran, as the organization’s first vice president of sustainability, responsible for coordinating energy and environmental programs across all departments of the Postal Service. One of Pulcrano’s first goals will be to complete an inventory of greenhouse gas emissions and create an action plan to reduce emissions.

“We continuously strive for sustainability, discovering better ways to deliver long-term value to our customers, employees and to the communities we serve,” Potter said. “This new position simply puts a more formal structure in place at an organization that has been environmentally smart and friendly for more than 200 years.”

Pulcrano currently serves as director of safety and environmental performance management, overseeing a staff of about 600 responsible for all environmental policies and programs, as well as safety compliance and procedures at more than 38,000 facilities across the country.

Under his direction, the Postal Service has become an industry leader in employee safety. Employee work-related accidents were reduced by 50 percent and the number of Voluntary Protection Program sites, the Occupational Safety and Health Administration’s (OSHA) highest safety recognition, increased to 150 in less than six years. No federal agency has a better record. The Postal Service also is a leader in the Environmental Protection Agency’s (EPA) “Performance Track” program, earning 31 applications for environmental programs and stewardship.

Pulcrano’s previous Postal Service positions include safety manager, manager of labor relations, area manager for human resources and manager of contract administration for the American Postal Workers Union and National Postal Mail Handlers Union. Pulcrano, 56, holds a bachelor of science degree in finance and management from the State University of New Paltz, New York. A native of Wichita, KS, he is married with two children and makes his home in Arlington, VA.

Earlier this month, the Postal Service launched an easy, online resource for consumers to make environmentally friendly decisions about their mail. From eco-friendly products and services to recycling ideas and ways to help marketers create greener advertising, usps.com/green contains hundreds of facts, suggestions and programs to help improve environmental awareness and make it easier for consumers to go green – including a way to calculate carbon footprint savings by conducting Postal Service business online.


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