Think that Royal Mail is bad? Wait until you see its privatised successors

The important task of getting crucial and confidential letters to people on time is jeopardised by profit-oriented thinking that prioritises getting postmen back to the depot to meet targets.

Last week marked the formal announcement by the Minister for Business and Enterprise Michael Fallon that the Royal Mail will be sold off by next April, setting the ball rolling on what is set to be the biggest privatisation for over 20 years.

This follows the deregulation of postal services in 2006, which has allowed companies such as TNT post to win contracts to deliver mail on behalf of private and public sector organisations. TNT post are in a pilot phase in West and Central London this year, providing competition to Royal Mail to deliver letters directly to the doorstep for the first time in Royal Mail’s 360-year history. They intend to expand their operation across the country in the coming years, aiming to employ up to 20,000 postal workers.

In light of recent changes in the postal system, upon hearing of problems with mail turning up late and sometimes not at all, I went undercover as a delivery operative for TNT post for Channel 4 Dispatches’ Secrets of Your Missing Mail (airing at 8pm tonight) to examine the quality of service provided by privately owned companies. I found cause for concern on several fronts, arising from the profit-driven privatisation of an industry that remains an important public service; the contracts up for grabs include the delivery of crucial letters for hospital appointments, benefit assessments, credit cards statements and household utility bills, so it is paramount that these letters are delivered reliably, punctually and securely.

However, I found that the important task of getting crucial and confidential letters to people on time jeopardised by profit-oriented thinking that prioritises getting postmen back to the depot to meet targets. On several occasions, I was called back to the depot in the early afternoon with bundles of mail left to deliver, frustrated as there were no logistical reasons as to why these letters couldn’t be delivered that day. This attitude, combined with the fact that TNT only deliver to each address every other day, means members of the public can be kept waiting unnecessarily for days or even weeks before receiving crucial letters. One of our contributors, for example, missed an appointment for a cancer test due to the late arrival of a letter from TNT Post, and was then made to wait agonisingly for three weeks to receive the letter with his results. Whilst TNT have not confirmed the reason for this delay, it is clear that if they are handling letters of this importance, mail should only be returned to the depot if there’s absolutely no other alternative.  

Furthermore, operating as private company - free from many of the regulations that bind the Royal Mail - allows TNT to operate on an uneven playing field. TNT are not obliged, like Royal Mail, to provide a universal service: Royal Mail are committed to delivering post up and down the country, six days a week, whether in Sheffield or the Shetland Islands, with a uniform pricing system allowing equal access to its services for everyone in the country. TNT, however, can simply cherry-pick highly profitable areas in which to operate, bidding only to deliver in dense urban areas such as West and Central London. There is a genuine concern amongst organisations such as the Communications Workers Union that this universal service will no longer be possible if private companies undercut Royal Mail for lucrative contracts, as it will leave Royal Mail unable to foot the bill for costlier deliveries in rural areas. Individuals and small businesses will be hardest hit, whilst the winners will be the large organisations that need to send out huge batches of mail.

Unlike Royal Mail, TNT have no obligation to meet the targets set by Ofcom, the independent regulator for the communications industry, so are not required to publish statistics or results on the quality of their service. Security practices were extremely poor at the depot in which I worked, as we delivered mail on bikes with no locks on the panniers containing the letters, leaving the bikes unattended in busy areas for lengthy periods of time whilst we walked large sections of our round. TNT hires temporary staff and students on zero-hour contracts and, whilst most of my colleagues were conscientious and honest, a combination of poor training, low pay and a transient attitude towards the job can only increase the likelihood of postal workers taking shortcuts and dumping mail, a practice that Channel 4’s Dispatches also exposed in this investigation.

Our investigation highlights worrying problems with privatised postal services; not only is our much-valued universal service under threat, but also the quality and integrity of services provided. If, as expected, privatisation continues to be rolled out across the country, the 29 million homes and businesses that rely on the service are entitled to expect better. 

Secrets of Your Missing Mail airs tonight at 8pm on Channel 4. 

A Royal Mail employee at the depot in Rathbone. Photograph: Getty Images

Paul Mills is a freelance journalist and filmmaker. He was the undercover reporter for Channel 4 Dispatches' Secrets of Your Missing Mail. His views are his own and he tweets @pmamills.

Getty
Show Hide image

There's nothing Luddite about banning zero-hours contracts

The TUC general secretary responds to the Taylor Review. 

Unions have been criticised over the past week for our lukewarm response to the Taylor Review. According to the report’s author we were wrong to expect “quick fixes”, when “gradual change” is the order of the day. “Why aren’t you celebrating the new ‘flexibility’ the gig economy has unleashed?” others have complained.

Our response to these arguments is clear. Unions are not Luddites, and we recognise that the world of work is changing. But to understand these changes, we need to recognise that we’ve seen shifts in the balance of power in the workplace that go well beyond the replacement of a paper schedule with an app.

Years of attacks on trade unions have reduced workers’ bargaining power. This is key to understanding today’s world of work. Economic theory says that the near full employment rates should enable workers to ask for higher pay – but we’re still in the middle of the longest pay squeeze for 150 years.

And while fears of mass unemployment didn’t materialise after the economic crisis, we saw working people increasingly forced to accept jobs with less security, be it zero-hours contracts, agency work, or low-paid self-employment.

The key test for us is not whether new laws respond to new technology. It’s whether they harness it to make the world of work better, and give working people the confidence they need to negotiate better rights.

Don’t get me wrong. Matthew Taylor’s review is not without merit. We support his call for the abolishment of the Swedish Derogation – a loophole that has allowed employers to get away with paying agency workers less, even when they are doing the same job as their permanent colleagues.

Guaranteeing all workers the right to sick pay would make a real difference, as would asking employers to pay a higher rate for non-contracted hours. Payment for when shifts are cancelled at the last minute, as is now increasingly the case in the United States, was a key ask in our submission to the review.

But where the report falls short is not taking power seriously. 

The proposed new "dependent contractor status" carries real risks of downgrading people’s ability to receive a fair day’s pay for a fair day’s work. Here new technology isn’t creating new risks – it’s exacerbating old ones that we have fought to eradicate.

It’s no surprise that we are nervous about the return of "piece rates" or payment for tasks completed, rather than hours worked. Our experience of these has been in sectors like contract cleaning and hotels, where they’re used to set unreasonable targets, and drive down pay. Forgive us for being sceptical about Uber’s record of following the letter of the law.

Taylor’s proposals on zero-hours contracts also miss the point. Those on zero hours contracts – working in low paid sectors like hospitality, caring, and retail - are dependent on their boss for the hours they need to pay their bills. A "right to request" guaranteed hours from an exploitative boss is no right at all for many workers. Those in insecure jobs are in constant fear of having their hours cut if they speak up at work. Will the "right to request" really change this?

Tilting the balance of power back towards workers is what the trade union movement exists for. But it’s also vital to delivering the better productivity and growth Britain so sorely needs.

There is plenty of evidence from across the UK and the wider world that workplaces with good terms and conditions, pay and worker voice are more productive. That’s why the OECD (hardly a left-wing mouth piece) has called for a new debate about how collective bargaining can deliver more equality, more inclusion and better jobs all round.

We know as a union movement that we have to up our game. And part of that thinking must include how trade unions can take advantage of new technologies to organise workers.

We are ready for this challenge. Our role isn’t to stop changes in technology. It’s to make sure technology is used to make working people’s lives better, and to make sure any gains are fairly shared.

Frances O'Grady is the General Secretary of the TUC.