Knowledge Centre
29th October 2009
The real cost of the postal strikes to small firms could be as much as £5,000, according to a survey of Federation of Small Businesses (FSB) members.
As the second wave of Royal Mail strike action started today, the business group highlighted a survey of more than 1,200 members, in which 46% estimated that delivery delays would hit their profitability by between £500 and £5,000.
According to the FSB, half of small firms would consider abandoning Royal Mail services, but feel "held to ransom" because alternative couriers are too expensive.
The latest industrial action - called to protest about the feared impact upon jobs of pay and modernisation plans - has come after formal negotiations between the Royal Mail and the Communication Workers Union (CWU) failed to reach a resolution.
Strikes are to continue tomorrow and peak on Saturday, when 77,000 delivery and collection staff will be involved in action across the country.
British Chambers of Commerce director-general David Frost branded the dispute "madness".
"No-one is benefitting from ongoing industrial action, and hard-pressed businesses are the innocent victims," he said.
"With the country still in recession, this really is a poorly-timed strike.
"Companies simply cannot rely on the postal service, and Royal Mail is paying for it in lost contracts and revenue."
IMAGE Tim Ireland/PA
Postal strikes 'could cost SMEs £5,000'
As the second wave of Royal Mail strike action started today, the business group highlighted a survey of more than 1,200 members, in which 46% estimated that delivery delays would hit their profitability by between £500 and £5,000.
According to the FSB, half of small firms would consider abandoning Royal Mail services, but feel "held to ransom" because alternative couriers are too expensive.
The latest industrial action - called to protest about the feared impact upon jobs of pay and modernisation plans - has come after formal negotiations between the Royal Mail and the Communication Workers Union (CWU) failed to reach a resolution.
Strikes are to continue tomorrow and peak on Saturday, when 77,000 delivery and collection staff will be involved in action across the country.
British Chambers of Commerce director-general David Frost branded the dispute "madness".
"No-one is benefitting from ongoing industrial action, and hard-pressed businesses are the innocent victims," he said.
"With the country still in recession, this really is a poorly-timed strike.
"Companies simply cannot rely on the postal service, and Royal Mail is paying for it in lost contracts and revenue."
IMAGE Tim Ireland/PA
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