Thursday, 2nd September 2010

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Daily post ‘may be scrapped’

Peter Donaghy and Derek Costa of the CWU talking to Deputies Judy Martin and Geoff Southern at the Museum Picture: MATTHEW HOTTON (00931114)

Peter Donaghy and Derek Costa of the CWU talking to Deputies Judy Martin and Geoff Southern at the Museum Picture: MATTHEW HOTTON (00931114)

JERSEY Post may have to reduce its local delivery service to every other day in the wake of the postal market being opened up to competition, the postal workers’ union has warned.

Following a meeting with States Members yesterday, union representatives of the postal service said that the granting of operating licences to companies in the fulfilment delivery industry would seriously hit the profitable part of the business.

The Jersey branch secretary of the Communication Workers Union, Derek Costa, who is also a Jersey Post employee, said that their meeting with States Members went ‘extremely well’ and that it was now formulating a campaign to try to get the Jersey Competition Regulatory Authority to reverse its decision.

A public meeting, with the JCRA and Jersey Post, is also being planned by the union for the near future.

Article posted on 9th April, 2010 - 3.00pm

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38 Article Comments

  1. J

    a) People are using email instead of post so let’s put the price up to encourage them.
    b) People find the post inconvenient so let’s make it far less convenient to encourage them.
    Sounds like the stroppy answer of a petulant teenager – a la Jersey Telecom before it was forced. Grow up and COMPETE – give people a reason to use the post not avoid it.
    NB Guernsey Post usually offers very cheap postage for pre-rush Xmas cards – that’s called trying.

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  2. tomh

    They compete in Mobile phones, they ship items into Jersey via ship2me, competing with the freight companies and harming local shops, but they think they shouldn’t have competition in post they are so out of order!

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  3. Mogit

    Just another example of the unreasonable attitude of a Jersey business to proposed competition, thank god for email and skype!!!

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  4. tom

    Just found the below on the JEP website. This shows why Jersey needs competition in bulk mail to improve local service and reduce prices or the local firms will leave anyway and not only will jobs be lost in Jersey Post but in local internet retailers as well:

    ‘Pick and pack’ jobs are lost
    By Harry McRandle
    A COMPUTER accessory company has made 15 staff redundant and is moving the delivery arm of its business to Switzerland.

    The owner of Memorybits International, Jonathan Ruff, has blamed the postal system for having to close his St Brelade warehouse. He said that the online business had been experiencing problems with deliveries to the German and French markets, so he decided to move the fulfilment arm closer to those countries.

    According to Jersey Post commercial director Andrew Starkey, the move by Memorybits would put a six-figure dent in the income of Jersey Post. However, there will be no job losses at postal headquarters.

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  5. Beaumont

    A classic case of why Trade Unions are the cancer of industry

    They hold Companies and Governments to ransom, and when that doesn’t work they go for the public.

    Fingers crossed these militants fail, and ultimately lose their jobs

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  6. pt

    the unions to be fair, look after themselves first, the businesses they work for second and the customer unfortunately comes last.

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  7. Brian

    Competition in the UK means that I’m being quoted £48 for delivery to Jersey for something that costs £10 and would cost about £4 to send by Royal Mail. Good luck to the unions; we need our postal service.

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  8. mistershifter

    Another rattle chucked out of the metaphoric pram which sadly is so typical of Jersey at the moment.

    Get over it, grow up, adapt to a changing market and move on.

    Nuff said.

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  9. Nathan

    Jersey Post are upping the price of postage again, and are also bringing in size postage which means it will cost more to send something small…. Sorry but i’m glad JCRA have not brough in competition, the greed of Jersey Post has to stop….

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  10. Parry G

    Well at last, some common sense. It’s no wonder Jersey Post fears competition out of concern for not being able to compete. The sooner they discipline those roundsmen who finish their rounds in double quick time and then spend hours at home, or whatever, before returning to the Post Office and then working additional overtime, …the better!!

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  11. kate

    Wake up Tom (4) where have you been recently. Many jobs have been lost at Jersey Post and more to come. Those who are now out of work some are living on Income Surport so where is the saving of that they are now being paid by us the Tax payer they would rather be back at work.
    Brian (7) well said I tried to order a unit a small one the other day value £40 but was quoted £50 shipping as it was a friend brought it in. Having it weighed at Jersey Post £12 shipping. Well done Jersey Post and long may it keep going.When we had the snow and ice I didn’t hear the complaints then when the Postmen still got our mail to us on time.I for one want my post daily and think we have a wonderful service.

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  12. Mr Impartial

    This scaremongery by the union is ridiculous and further lessens their credibility.Jersey Post have been quick to diversify into other markets but now don,t want anyone to compete with them.JCRA are right on the nail with there decision if the market is not opened up many local businesses associated with fulfillment will go under in light of the new annouced postal rates.

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  13. Aukward

    Why is there only one Jersey Competition Authority?

    This is PCitis thats getting to epic proportions.An industry I am involved with (not finance) and exports 95% of its product has 5 players two of whom are 80% of the industry one of those wanted to buy out a smaller operator (5%)and this needed full checking and reporting at lots of expense real annoyance and no reason for it.

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  14. Leonr2z

    (12) I agree, two months ago Postal Services wanted in on the telecoms business, now they are bleating about the same competition rules being applied to them. Time to grow up and compete fairly and properly. If you are good enough, then you will survive and prosper.

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  15. Aukward again!

    Ship to me and Me;mo are brainchildren of a 1.1K who made some cash in the UK and now has a job at Rue de Pres. (Fancy having a technology business with a keystroke that can’t be used in a .com!!!!)
    Why on earth did this happen? He has nothing to lose and presumably got a salary at tax payers expense.

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  16. Dave

    Will there be job losses or will there be the same number of workers but employed by different firms?

    If there are overall job losses,it surely would mean that the new firms were more efficient than Jersey Post.

    The union reaction(probably supported by the management in this case) is the standard Jersey reaction in the civil service and government owned companies to cost savings or competition. – Threaten to cut the services which will inconvenience the public the most.

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  17. Aukward yet again!

    A quote from Jersey Post Me:mo launch in Nov 2009

    Mr Whipp added, “Competition is healthy in every industry, driving down price and giving customers greater choice. As technologies and customer behaviours change it is important that businesses like Jersey Post Group continue to grow and diversify in order to remain profitable and offer core services that the public rely on.”

    What a difference 6 months of reality makes!

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  18. Rozeljoe

    Email is quick and easy, but is really impersonal; a handwritten letter has “life” in it.

    I think postal systems around the world are suffering, Jersey is no exception. But why not fight back, be proactive, get people to write real letters.

    I am fed up of getting bills and more bills and junk mail through the post, how nice it would be to receive an old fashioned letter, with real handwriting instead of having to log on.

    And yes, I do use email extensively, but do write some letters, it’s just nice to feel the weight of a fountain pen flowing over paper and the recipient knows I have spent time and effort in doing so. A handwritten letter in today’s fast world says more than just the words on the page.

    “Write a letter and send more than words” Jersey Post (Possible Jersey Post advert?)

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  19. Anon

    What is it with the extreme right wingers you write daily on this page. There is not one right that any worker enjoys that has not been brought about by trade unions. Holidays. Bank hloidays, maternity leave paternity leave, sexual discrimation laws, anti racism laws, freedom of speech, ACAS, JACS, competetion laws. Take along look around you and see what unions have done instead of complaining and bleating on about the benifits of Public sector ( and all their good will, without which this island would stop within a week ). The politics of envy is usually fuelled by those less capable and not as well educated. We all know were this extreme right wing policy ends, if anyone cares to read any history book. PS. the punblic sector did not cause this recession. The greed of an unfettred extreme right wing band of ‘I’m all right jacks ‘ in the private sector did.

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  20. R Coutanche

    Why has nothing been said about Jersey Bob’s Bean Crock held at the opera house two weeks ago. It was a brilliant night with all home grown talent on stage , All we hear at the moment is support local, then where is the publicity from J.E.P for these young local and very talented people
    I watched Bob in New Zealand and he had very good write ups ,
    So come on give them a bit of encouragement.

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  21. R Coutanche

    The Jersey Post has brought this on themselves, first they have spent over a 1/4 of a million pounds on trying to get the mail from the airport to Rue des Pres quicker, they have postmen waiting up there in the day sometimes for an hour,
    One of their top bosses has publicly been running down other courier companies and now his own drivers are doing what he was complaining about, So Serves them right.

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  22. Pete

    Kate (11) – it seems that you have been a victim of this blatant union-led scare mongering.

    I agree with you that Jersey Post should continue to offer a daily service but, as a postal company this should be their upmost priority. Unfortunately they are threatening to stop this service, which would affect the largest amount of customers, instead of looking carefully at their business plans and weeding out the aspects of the business that do not work.

    You are correct in saying that the daily postal service is good, and I agree that this should continue. What the unions are doing is a classic scare-mongering tactic – threaten the service that is offered to the masses in order to recruit the masses to their side, all the while completely ignoring the true point of this issue: adapt to a changing market and accept competition, or suffer job losses and a decrease in revenue. This is one of the most simple rules of business, and Jersey companies (many of whom claim to be ‘market-leaders’) are always the last to realise this.

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  23. BS Deluxe

    Is it just me who thinks this is totally absurd.

    If there is competition then surely Jersey Post should up the ante rather than threaten to reduce their service with “every other day deliveries”.

    They will shoot themselves in the foot because their competitors will just decide to offer daily…or even twice daily deliveries to gain custom.

    Wake up Jersey Post!

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  24. Cpl

    I don’t mind having post every other day – it’s usually only bills I receive and junk mail – I receive more emails these days – and if having competition means I have a choice of what price I pay to send parcels etc then that’s great – and I agree with others – how come jersey post are happy to compete with phone companies but not happy when another postal company can set up against them – has anyone from jersey post answered this question?

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  25. move forward

    Posties are obsolete now. Not needed ,we live in the internet world now folks.Love internet shopping too and parcel delivery companies are busier than ever.Agree with above only mail from post office is bills and unwanted property mags.

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  26. move forward

    Oh yeah, don,t you love those envelopes with “to the occupier”on them. hello the occupier..who do you think i am the Queen Mother? have a name thankyou. If ya don,t know me, don,t send it!

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  27. Claude

    Jersey post are laying off people but taking on new staff at a reduced wage. i can’t see the sense in doing a jersey 2nd class delivery (2 day delivery) if they still have to delivery UK post to that address what they going to do at christmas time increase the prices again like they usualy do. Why not let the jersey people have something they want compition. I’m sure if Miss Piggy or kermit stood for states they would get voted in…Why? cause they are also muppets.

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  28. chris

    i certainly don’t want to see the demise of the postie, and imo in no way are they obsolete. the parcel delivery companies don’t know your area as well and you don’t know when they’ll deliver unlike the regular post. many a time i’ve had just the ’sorry we missed you’ card delivered while being in.

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  29. Warren J

    I am more than happy to just have my mail delivered once a week, preferably on a Saturday before 9.00 am when I am available to sign for anything or pay excess charges etc !

    In these environmentally concious days, there is no reason to have Posties driving arround the island visiting virtually every address.

    Business and communication has changed so much over the years. Jersey Post needs to adapt.

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  30. Grateful Fool

    Oh no so that means I will only get junk mail every other day.

    As a previous poster stated, once a week would be fine as it is only a few bills and junk I get. In no rush to receive either.

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  31. C Le Verdic

    #26 “Oh yeah, don,t you love those envelopes with “to the occupier”on them. hello the occupier..who do you think i am the Queen Mother?”

    Anything that comes to me addressed “To the occupier” goes back in the post box next time I’m passing as I don’t have the facility to burn rubbish for heating purposes.

    Also, any reply to threating letters from TV licensing etc. not addressed to me by name gets signed ” T.H.E. Occupier”, written with a flourish just like lawyers get away with when signing in the firm’s name rather than the person responsible.

    Now you know where I got the idea of signing myself C Le Verdic. I’ve also been Mr Uckoff with the appropriate initial when really called for!

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  32. Cathy

    Most of my post takes 3 or 4 days to arrive from a local address – I thought I was already getting a second class post??

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  33. Green Bean

    Putting up prices and delaying the post will not help them when competition comes in … and not a moment too soon i say! Jersey Post is expensive enough already and doing these things will not endear them to the long-suffering public!
    Why should we support them when they treat us in this way?

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  34. George

    They compete with JT in the phone market, encourage people to avoid buying locally with their ship2me crock of you know what, and now they are saying that they should have a monopoly! I know a few JT staff and they are having a real good laugh at this one. Competition has made JT leaner and meaner, and from what I hear they have a dynamic new CEO. Jersey Post should do the same, and realise that the afore mentioned 1(1)k actually has no idea about the local market. Cake and eat it comes to mind

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  35. Howzat!

    When are the majority of you people going to wake up and smell the coffee?

    Its called Cherry Picking!

    There will be only two winners in this……The fulfilment companies and Citipost and/orHub Europe.
    I would imagine that Citipost and/or Hub Europe will have little or no presence in the island, meaning no jobs created and money exiting the Island with no tax paid on it.

    No benefit to Jersey whatsoever.

    The states are a major stakeholder in Jersey Post and The States receive payment from Jersey Post annually, therefore if this business is taken away and Jersey Post run at a loss, The States will not receive their annual payment, but will still have to subsidise the delivery network, (Dont see many competitors bidding for this loss making arm of Jersey Post’s business do we?)thus the black hole gets even bigger and Inevitable Job losses will mean an even bigger burden on the local economy.

    As a point of note, Jersey Post competes in the local market…. dont forget!…. so the benefits stay within the Island for the Island.

    So….Who will foot the bill for this? Answer: The taxpayer!
    So I just wonder if you will have the same attitude when you are told your taxes will rise as a result? I guess not. You have been warned.

    So if you have any interest in protecting this Island you will, like me, be writing to Mr Chuck Webb to voice your opposition to this decision.

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  36. Christopher Bee

    #35

    I am happy to inform you that HubEurope are the only Channel Island owned and operated company. I am also happy to tell you that the group currently employs over 50 local people and hopes to employ more. We use only local companies and services and pay social security and income tax locally.

    Jersey and in fact Guernsey – both benefit from the LVCR business (the sale of goods under £18). It is a large employer and contributor. But as pointed out in #4 by Tom – fulfilment companies have long been unhappy with the services and the prices provided by the Islands incumbent postal providers, we were approached by local business to provide a solution for them – so that they could stay in the Island, continue to live here, employ here and pay tax here.

    As rightly pointed out Jersey Post have welcomed competition #17 – but clearly that only applies when they wish to compete with others, not the other way round. Jersey having been my home since 1969 – I was appalled by the idea of Jersey Post offering a service (Ship2Me) that effectively took money from the local retailers – at the very same time that the States were running a Think Twice Buy Local campaign.

    What will HubEurope do for the postal business in Jersey? It will provide an environment where local business can continue to operate and grow. Don’t be fooled by the propaganda – Jersey Post have access to lower rates than either HubEurope or Citipost – so ask yourself – why are their rates higher? Also consider how – to date – Jersey Post has creamed the profits of the Fulfilment Industry to pay off its pension deficit etc. What – if like other small jurisdictions such as the IOM or Malta etc Jersey Post never had the benefit of the Fulfilment Industry? Is it saying that it would be unable to operate a service today?

    HubEurope is all about benefits for Jersey – the people of Jersey and the bulk mailers – be they fulfilment houses or not. HubEurope do not believe in manipulated and ill informed blackmail that scares the Island.

    If this is the way that Jersey Post does business then I suggest the JCRA put the USO or parts thereof out to tender. It is important to note that HubEurope applied for a full postal license but our initial notice was limited by the JCRA to only large letters and packets – in order to continue to protect Jersey Post and finance their supposedly massively expensive infrastructure.

    Jersey Post still have a monopoly on all letters and on the majority of the 33 million inbound items to the Island.

    Put simply this is a case of sustained ineffective management that has lived off the fat and is now worried that it needs to compete – and compete for the good of the Island.

    Ask Jersey Post what the cost of launching Ship2Me was? Then think about that.
    Ask Jersey Post how nice it is to operate in a building gifted to them by the States
    Ask Jersey Post how many mobile phones it has sold – does this justify the prime retail space used at the Post Office.

    There is no cherry picking here – this is an attempt to drive down costs to the consumer and make Jersey Post and all postal suppliers more lean and efficient.

    What message is sent to the worldwide financial community if the States of Jersey decide to overrule a decision of the JCRA (an Authority set up by the States themselves in 2001 under the Competition Regulatory Authority (Jersey) Law 2001) and discourage competition amongst commercial companies?

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  37. baz

    @35

    Nice one!!! Shut the well informed geniuses on this forum up!

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  38. Kathy

    Well, the trouble started when the Postal Services (Jersey) Law 2004 left the postal service in an extremely vulnerable position.

    The time for public meetings, consultations and the like may well have been back then when the Trojan Horse was created.

    This is a symptom of so-called deregulation.

    Oddly, we lost milk deliveries a few years ago, even though that was part of the deal when the farmers were forced to relinquish their dairies in favour of an enforced monopoly in 1954. It seems that those who purport to act on our behalf seldom do so and valuable community services are lost as a result.

    As an aside, I wonder if the bloke at Jersey post is local?

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