News

Tim Sheahan, printweek.com, 16 March 2010

Royal Mail's recent pay agreement with the Communication Workers Union could prove to be a boon for direct mail printers following the removal of the weekly cap on unsolicited mail deliveries.

As part of the agreement, entitled Business Transformation 2010 and Beyond, the three pieces of unsolicited mail per week limit has been scrapped and such deliveries can now also take place on Saturdays.



The deal, part of Royal Mail's £2bn modernisation programme, will increase Royal Mail's capacity to handle direct mail drops, which could positively impact on printers if companies ramp up their marketing campaigns as a result.



John Hornby, chief executive of The Lettershop Group, said he thought it would be "a positive move for the industry".



"There has previously been a lack of capacity but this change will give customers another route to market with their campaigns," he explained.



Removal of the mailing limits should also improve Royal Mail's competitiveness to pitch for the approximately 9bn pieces of unaddressed mail sent per year.



Robert Keitch, chief of membership and brand at the Direct Marketing Association, said: "Clients are looking for competitive pricing and a quality service. With a more competitive marketplace, customers will benefit from that so it's good news."



Sam Neal, managing director of Geoff Neal Litho, agreed that the move was a positive one, but said work levels would not necessarily increase as a result.



"Well it’s not negative, but I don’t think run lengths will increase because people don’t have budgets for it," he said.



Under the new Royal Mail agreement, basic pay rates will improve by nearly 7% over three years from 1 April, while the working week has been cut by one hour.



The deal also means each employee will receive a £1,000 lump sum upon delivery of planned changes at the company.



In other news, TNT Post has launched a business-to-business next day delivery service that it is pitching as "the first physical alternative to Royal Mail's first-class service".



Currently rolling out across Scotland, the service will have a phased implementation across the UK during this year.



Nick Wells, chief executive of TNT Post UK, said: "With FirstSort, whether sending regionally or nationally, our customers know that with us they will receive a first-class service."

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