Home » UK Business & Employment News • UK Business News » Royal Mail faces Ofcom investigation over missed delivery targets
Royal Mail faces Ofcom investigation over missed delivery targets
https://www.whatjobs.com/news/united-kingdom/uk-business-news/royal-mail-faces-ofcom-investigation-over-missed-delivery-targets
The UK communications regulator Ofcom has launched an inquiry into Royal Mail following the company's announcement it failed to meet its delivery targets for the 2022-2023 period.
The targets require Royal Mail to deliver 93 percent of first-class mail within one working day, 98.5 percent of second-class mail within three working days, and complete 99.9 percent of delivery routes on each required delivery day.
However, Royal Mail reported only 73.7 percent of first-class mail arrived within one working day, 90.7 percent of second-class mail arrived within three working days, and just 89.35 percent of delivery routes were completed as required.
Read More: Royal Mail boss Simon Thompson to step down
Ofcom's investigation will examine whether there were any valid reasons or exceptional events beyond the company's control that led to the failure in meeting its universal service obligation.
If Royal Mail fails to provide a satisfactory explanation, it could face a fine.
The company could cite industrial action as a factor affecting its performance.
Over the past year, Royal Mail faced strikes by members of the Communication Workers Union (CWU) seeking better pay and working conditions.
Read More: Royal Mail chief in talks over standing down after strikes and bitter union row
Although the Royal Mail CEO, Simon Thompson, admitted prioritizing parcels over letters during and after the strikes, he denied it being company policy.
Thompson faced scrutiny during a hearing with the Business, Energy, and Industrial Strategy committee, where inconsistencies in his evidence were raised.
A Royal Mail spokesperson said: "We are disappointed with our quality of service performance and restoring our service to the high standards our customers expect is our top priority.
"We will participate fully with any Ofcom's investigation."
Read More: Royal Mail and Communication Workers Union finally reach deal on pay
The company has committed to fully cooperating with Ofcom's investigation.
This is not the first time Royal Mail has been investigated by Ofcom.
In 2019, the company was fined £1.5 million for failures in delivering first-class post.
Last year, Ofcom warned Royal Mail that the COVID-19 pandemic could not be used as an ongoing excuse for poor delivery after it failed to meet the 2021-2022 delivery targets.
Need Career Advice? Get employment skills advice at all levels of your career
However, Ofcom did not find the company in breach of its regulatory obligations for that year. Royal Mail also fell short of meeting the 2020-2021 targets.
On Friday, the Royal Mail chief executive formally announced his departure plans, and the company is in the advanced stages of appointing a new chief executive.
Simon Thompson will continue with the business until October 31 to facilitate a smooth transition.
Follow us on YouTube, Twitter, LinkedIn, and Facebook
