Royal Mail has been fined £10.5m by the regulator for failing to fulfill supply targets for first and second class mail.
It is the second 12 months in a row the corporate has been fined by Ofcom for poor supply efficiency.
The regulator stated Royal Mail had didn’t “significantly improve service levels”.
It stated 74.7% of top notch mail and 92.7% of second class had been delivered on time in 2023-24, properly in need of the targets of 93% and 98.5%.
Ofcom stated the corporate had blamed its poor efficiency on its difficult monetary place, and on delays to a poll on a pay deal following strike motion by members of the Communication Workers’ Union final 12 months.
However, Ofcom stated: “We do not consider either of these to be justifiable reasons for Royal Mail’s failure to provide the levels of service expected of it.
“Royal Mail took inadequate and ineffective steps to attempt to forestall this failure, which is prone to have impacted hundreds of thousands of consumers who didn’t get the service they paid for.”
Last year, Royal Mail was fined £5.6m for the same reason.
Ofcom said that in addition to the fine, it had been pressing the company to see what it was doing to improve its performance.
While there had been some progress, it said performance in 2023/24 had only been “marginally higher” and “it must do significantly better”.
News of the newest superb comes at a time when Royal Mail’s mum or dad, International Distribution Services, is dealing with a possible takeover by the Czech billionaire Daniel Kretinsky’s EP Group.
https://www.bbc.com/news/articles/cp8nkj2k237o