Royal Mail announce plans to relocate mail processing operations away from Shrewsbury

Under the proposal Chester Mail Centre would handle all mail for the SY (Shrewsbury and Mid Wales) postcode area; Cardiff Mail Centre would handle the LD (Llandrindod Wells) postcode area and North West Midlands Mail Centre (Wolverhampton) would handle the TF (Telford) postcode area.

The proposal follows a review of processing operations in Shrewsbury that began in February. The final decision on the proposal is expected to be reached in late Autumn.

The review is being conducted on the basis of the Business Transformation 2010 and Beyond agreement which is the national Agreement between Royal Mail and the Communication Workers Union (CWU) for modernising the business. This agreement was endorsed by postmen and women in a national ballot in April 2010.

Growth in electronic communication
Royal Mail say the changes are needed in response to the huge growth in electronic communications and the resulting decline in overall mail volumes. The latest Royal Mail financial results indicate that nationally letter volumes fell by 6% compared to the previous year. Royal Mail now deliver 58 million items a day compared to 84 million items a day six years ago.

In Shropshire and Mid Wales, mail volumes of items posted to addresses in the region from other parts of the country have fallen by 48.6% in the last five years. Mail volumes of items posted in Shropshire and Mid Wales to addresses outside the area have fallen by 35% in the same period.

Consultation
Today’s announcement of a formal proposal is the result of over six months’ consultation by Royal Mail with its people and trade unions.

There are around 240 processing and network staff currently working at Shrewsbury Mail Centre. Royal Mail say it is too early to say what the impact of the proposal will be as it depends on the final outcome of the consultation with unions and employees. Royal Mail’s aim is to minimise any job reductions and make changes without compulsory redundancies. It is hoped that roles will be found for everyone who is affected by the proposed changes. The consultation has involved the CWU and Unite CMA.

Paul Parvin, Processing Director for Royal Mail, said: “Change is absolutely essential to meet customers’ expectations of a world class postal service, ensure we operate efficiently and provide a great quality of service in a smaller and radically changing market.”

“Any change to our mail centre in Shrewsbury will, unfortunately, impact on some colleagues. Our agreements with the CWU set out an agreed approach to managing these changes and we will be working very closely with the CWU and Unite CMA to support our people during what will, inevitably, be a period of uncertainty.”

“This review is part of the ongoing modernisation and investment in our business. This is vital in order to put Royal Mail on a sound, secure and sustainable footing for the future.”

Reaction
Shrewsbury and Atcham MP Daniel Kawczynski said: “I am hugely saddened to learn that the Royal Mail has today proposed moving its mail processing operations away from our county town, and I am committed to working alongside all of the agencies and departments involved to ensure that the 240 employees affected receive the most positive outcome possible.”

“The Royal Mail has had a presence here in Shrewsbury since the 1880s, and a mechanised office for the last 32 years, and its loss will be a blow to the town and to both present and past employees. I am committed to working hard to encourage the Royal Mail to reconsider their interim decision and to keep the processing service here in Shrewsbury, but if they will not be swayed then I will do everything in my power to help minimise compulsory redundancies and to ensure that those staff who wish to remain within Royal Mail’s employ are offered a suitable alternative role.”