Royal Mail is halting the final rollout of its second-class postal reforms until after Christmas, bowing to calls for the provider to focus on the busy festive period and improve its service standards.
Under an agreement with the Communication Workers Union, the company will delay extending the changes to its last 107 delivery hubs until 11 January. The overhaul, already introduced in nearly 1,100 of its 1,200 delivery offices, will see second-class letters delivered on alternate weekdays, with Saturday services removed entirely. A further 15 sites will still be included by 2 November.
The decision comes after Prime Minister Andy Burnham last week labelled Royal Mail's service "unacceptable for far too long" and warned the government might consider "further measures" if the company did not quickly restore standards. In Prime Minister's Questions, Burnham said Royal Mail must "bring forward a plan to restore service standards to the level they need to be at."
The Communication Workers Union earlier this month called for an emergency summit on Royal Mail's future, claiming the organisation was "on the brink of collapse."
Royal Mail insisted its reforms were starting to show results. Chief executive Alistair Cochrane said: "We have now deployed our new delivery model in around 90 per cent of delivery offices and are starting to see the benefits for customers. First-class quality of service has improved by 9 per cent, and offices operating under the new delivery model are delivering to around 95 per cent of addresses each day on average, compared with 88 per cent before rollout began."
He added: "There is still more to do, but the progress we are seeing gives us confidence that the new delivery model will continue to ensure more reliable, efficient and sustainable deliveries for our customers."
Royal Mail described the delay as a "pragmatic approach" to maintain momentum while keeping focus on a successful Christmas.
The company missed its delivery targets again in August. During the first quarter of the year, it delivered 85 per cent of first-class mail the next day and 91.4 per cent of second-class mail within three working days. Under recently lowered targets set by Ofcom, 90 per cent of first-class mail should be delivered the next day and 95 per cent of second-class mail within three days. Royal Mail said this marked an improvement from a year earlier, when first-quarter figures showed 76 per cent of first-class and 89.3 per cent of second-class post arrived on time.
Royal Mail published an improvement plan in the spring that included a commitment to invest £500 million in quality of service over five years. Earlier this month, it said it would cut 2,500 head office and supporting roles, about 2 per cent of its overall workforce, but said frontline postal workers were not part of the proposed restructure.
The company is hiring 22,000 temporary workers over the Christmas period to handle the additional festive mail.