PO splits business
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• The Post Office is to split its parcels and letters operations, blaming "loss of confidence" by customers in Royal Mail Parcels after last year's postal strike.
Up to 150 Special parcels depots are to be set up, joining the 31 already established.
Royal Mail Parcels and the letter post have been run separately for several years, but last year's dispute sped up plans to sever all links between the two. Royal Mail letters offices currently handle 80% of parcels. Although the 10-day dispute only directly involved letters staff, it affected the parcels operation which claims to have excellent relations with its workers.
The move could signal the privatisation of Royal Mail Parcels, although the subsidiary denies it is under pressure by losing ground to private competitors such as TNT. "We did undoubtedly suffer from the strike, but we still have 30% of the market — the biggest share," it says.