Latest news with #DanielKretinsky
Sky News
10-07-2025
- Business
- Sky News
Royal Mail to scrap second-class post on Saturdays and some weekdays
Why you can trust Sky News Royal Mail is to be allowed to scrap Saturday second-class stamp deliveries, under a series of reforms proposed by the communications regulator. From 28 July, Royal Mail will also be allowed to deliver second-class letters on alternate weekdays, Ofcom said. The post will still be delivered within three working days of collection from Monday to Friday. The proposals had already been raised by Ofcom after a consultation was announced in 2024, and the scale back was proposed early this year. Royal Mail had repeatedly failed to meet the so-called universal service obligation to deliver post within set periods of time. Those delivery targets are now being revised downwards. Rather than having to have 93% of first-class mail delivered the next day, 90% will be legally allowed. 5:01 The target for second-class mail deliveries will be lowered from 98.5% to arrive within three working days to 95%. A review of stamp prices has also been announced by Ofcom, which it said follows concerns raised by "many people and organisations". Consultation will begin next year. It's good news for Royal Mail and its new owner, the Czech billionaire Daniel Kretinsky. Ofcom estimates the changes will bring savings of between £250m and £425m. A welcome change? Unsurprisingly, the company welcomed the announcement. "It is good news for customers across the UK as it supports the delivery of a reliable, efficient and financially sustainable universal service," said Martin Seidenberg, the group chief executive of Royal Mail's parent company, International Distribution Services. "It follows extensive consultation with thousands of people and businesses to ensure that the postal service better reflects their needs and the realities of how customers send and receive mail today," Mr Seidenberg said. Citizens Advice, however, doubted whether services would improve as a result of the changes. "Today, Ofcom missed a major opportunity to bring about meaningful change," said Tom MacInnes the director of policy at Citizens Advice. "Pushing ahead with plans to slash services and relax delivery targets in the name of savings won't automatically make letter deliveries more reliable or improve standards." Acknowledging long delays "where letters have taken weeks to arrive", Ofcom said it set Royal Mail new enforceable targets so 99% of mail has to be delivered no more than two days late. Changing habits Less than a third of letters are sent now than 20 years ago, and is forecast to fall to about a fifth of the letters previously sent. According to Ofcom research, people want reliability and affordability more than speedy delivery. Royal Mail has been loss-making in recent years as revenues fell. In response to Ofcom's changes, a government spokesperson said: "The public expects a well-run postal service, with letters arriving on time across the country without it costing the earth. With the way people use postal services having changed, it's right the regulator has looked at this. "We now need Royal Mail to work with unions and posties to deliver a service that people expect, and this includes maintaining the principle of one price to send a letter anywhere in the UK". Ofcom said it has told Royal Mail to hold regular meetings with consumer bodies and industry groups to hear their experiences implementing the changes.
Yahoo
10-07-2025
- Business
- Yahoo
Royal Mail to scrap second-class post on Saturdays and some weekdays
Royal Mail is to be allowed to scrap Saturday second-class stamp deliveries, under a series of reforms proposed by the communications regulator. From 28 July, Royal Mail will also be allowed to deliver second-class letters on alternate weekdays, Ofcom said. The post will still be delivered within three working days of collection from Monday to Friday. Money blog: Top chef reveals thing he hates about customers The proposals had already been raised by Ofcom after a consultation was announced in 2024, and the scale back was proposed early this year. Royal Mail had repeatedly failed to meet the so-called universal service obligation to deliver post within set periods of time. Those delivery targets are now being revised downwards. Rather than having to have 93% of first-class mail delivered the next day, 90% will be legally allowed. The target for second-class mail deliveries will be lowered from 98.5% to arrive within three working days to 95%. It's good news for Royal Mail and its new owner, the Czech billionaire Daniel Kretinsky. Ofcom estimates the changes will bring savings of between £250m and £425m. Unsurprisingly, the company welcomed the announcement. "It is good news for customers across the UK as it supports the delivery of a reliable, efficient and financially sustainable universal service," said Martin Seidenberg, the group chief executive of Royal Mail's parent company, International Distribution Services. "It follows extensive consultation with thousands of people and businesses to ensure that the postal service better reflects their needs and the realities of how customers send and receive mail today." Changing habits Less than a third of letters are sent now than 20 years ago, and is forecast to fall to about a fifth of the letters previously sent. According to Ofcom research, people want reliability and affordability more than speedy delivery. Royal Mail has been loss-making in recent years as revenues fell. In response to Ofcom's changes, a government spokesperson said: "The public expects a well-run postal service, with letters arriving on time across the country without it costing the earth. With the way people use postal services having changed, it's right the regulator has looked at this. "We now need Royal Mail to work with unions and posties to deliver a service that people expect, and this includes maintaining the principle of one price to send a letter anywhere in the UK" This breaking news story is being updated and more details will be published shortly. Please refresh the page for the fullest version. You can receive breaking news alerts on a smartphone or tablet via the Sky News app. You can also follow us on WhatsApp and subscribe to our YouTube channel to keep up with the latest news.
Telegraph
10-07-2025
- Business
- Telegraph
Royal Mail allowed to scrap second-class Saturday deliveries
Royal Mail will be allowed to scrap Saturday deliveries for second-class post after the cost-cutting move was approved by regulators. Under a radical overhaul announced by Ofcom, the postal service will now deliver second-class letters on as few as two days a week as part of an alternate weekday service from July 28. The regulator said the plans, which would still require letters to be delivered within three working days of collection, could help Royal Mail save between £250m and £425m a year. Ofcom also said its delivery targets will be reduced. The announcement comes after Czech billionaire Daniel Kretinsky completed his £3.6bn takeover of Royal Mail, which has already led to the departure of the company's chief executive in recent weeks. The deal marks the first time the postal service has fallen into foreign ownership in its 500-year history. Following the latest changes to delivery rules, union leaders warned they were not a solution to 'clear problems on the ground' as Royal Mail struggles to recruit and retain staff. 'Best interest of consumers' Ofcom's director for networks and communications Natalie Black said: 'These changes are in the best interests of consumers and businesses, as urgent reform of the postal service is necessary to give it the best chance of survival. 'But changing Royal Mail's obligations alone won't guarantee a better service – the company now has to play its part and implement this effectively. 'We'll be making sure Royal Mail is clear with its customers about what's happening, and passes the benefits of these changes on to them.' Ms Black also signalled a looming rise in stamp prices: 'As part of this process, we've been listening to concerns about increases in stamp prices. So we've launched a review of affordability and plan to publicly consult on this next year.' However, the postal service will still be required to deliver first-class letters the next working day from Monday to Saturday, and there will continue to be a cap on the price of a second-class stamp. Dave Ward, general secretary of the CWU union, said: 'These changes are not a 'one-stop solution' for the problems in the postal service – the real culprit behind these issues is Royal Mail's inability to properly recruit and retain staff, which has led to workloads piling up in delivery offices and vital letters being left behind. 'The new owners of Royal Mail must ensure that the culture of mismanagement and inferior pay and conditions for new staff does not continue under their leadership.'
Times
30-06-2025
- Business
- Times
New Royal Mail owner tells workers: We need to be on the same ship
The Czech billionaire behind the £3.6 billion takeover of the owner of Royal Mail has called on workers to be 'on the same ship' for the 500-year-old business to succeed. In an internal memo to staff, coinciding with Royal Mail reaching an agreement with unions on pay at the weekend, Daniel Kretinsky said: 'We recognise the importance of working together with our trade unions to ensure a successful future for Royal Mail and a fresh start for our industrial relations.' Under its previous management, Royal Mail was weakened by a bitter industrial dispute that had featured 18 days of strikes over pay and conditions. The breakdown left workers 'disengaged' and the company, which has been expanding in parcels amid the long-term decline in letters, losing more than £1 million a day. EP Group, a conglomerate controlled by Kretinsky, completed an audacious 370p-a-share takeover of International Distribution Services (IDS) in May after agreeing undertakings with ministers, including issuing a so-called golden share to the government, as well as reaching an agreement with the Communication Workers Union, representing frontline Royal Mail workers. Following on from that agreement in December, union bosses told members on Sunday that a deal on pay had now been reached. 'If it is endorsed by the postal executive we will share the full details of the agreement as part of an extensive communications exercise ahead of a full members ballot,' Dave Ward, the general secretary, said. Ward has previously said 'the status quo is not tenable' and that the government's 'golden share' had given the union 'more confidence to go ahead with the agreement'. Kretinsky, who has invested fortunes raised from European energy assets in food, media, logistics and sports, including stakes in J Sainsbury and West Ham United football club, has installed himself as chairman, replacing Keith Williams, the former IDS chairman, who left the company in June. Emma Gilthorpe has been replaced as chief executive of Royal Mail by Alistair Cochrane, who has been promoted from his role as chief operating officer. Associates of Kretinsky have also been appointed to the board. Jiri Zrust, a fellow Czech who is a senior logistics executive at Trafigura, the commodities group, has been appointed as an independent non-executive director. Greg Hands, a former Conservative trade minister, has been appointed as a strategic adviser to EP Group, which is based in Prague. In his memo to staff, Kretinsky said he was committed to 'working jointly' with CWU and Unite, which 'underlines what I have said from the very beginning of this process: we all need to be 'on the same ship' because if Royal Mail succeeds, we will all benefit'. Kretinsky reiterated that EP Group were 'committed investors and partners and believe the pathway to success lies in taking a truly long-term view of the future'. 'Despite a very challenging market environment, the difficult financial situation for Royal Mail and ongoing uncertainty about desired universal service regulatory changes, we have offered CWU a three-year pay deal, with greater job security.' He said Royal Mail had 'strengths that no other company can match, such as our brand heritage and our beloved posties'. IDS also owns GLS, a more successful parcel business that operates across Europe and North America. Krestinsky is understood to be focused on expanding GLS.
Malay Mail
27-06-2025
- Business
- Malay Mail
Czech billionaire Daniel Kretinsky takes charge of Royal Mail after £3.6b takeover
LONDON, June 27 — Czech billionaire Daniel Kretinsky has been named chairman of Britain's centuries-old Royal Mail following a takeover of its parent company, his firm EP Group announced on Friday. EP Group completed its £3.6-billion (RM20.9 billion) takeover of International Distribution Services (IDS) earlier this month, bringing the postal service under foreign ownership for the first time. Kretinsky will chair the boards of both Royal Mail and its parent company IDS, following the group's exit from London's stock exchange. The group has also issued a so-called golden share to the UK government, granting it veto power to ensure the postal operator's headquarters and tax residency remain the UK. Former state monopoly Royal Mail, which was privatised in 2013, has suffered in recent years from falling parcel volumes, delays in delivering mail and strikes over pay. Kretinsky agreed the deal to buy the postal operator in May last year. However, he only won government approval in December after making several commitments, notably maintaining the Universal Service Obligation to deliver mail six days a week to all 32 million UK addresses for the price of a stamp. The 49-year-old Czech businessman made his fortune in the energy sector before ramping up investments across various countries and sectors. He owns a stake in British supermarket Sainsbury's, Premier League club West Ham United and Elle magazine. — AFP
