Royal Mail is failing to meet its statutory requirements, an influential parliamentary business committee has found, calling regulator Ofcom and the Information Commissioner to investigate the delivery company.
The cross-party Business, Energy and Industrial Strategy (BEIS) committee slated the postal group in a report, saying it had “systematically failed” to meet its universal service obligation and pointing to “widespread” errors in applying company policy.
Parent International Distributions Services PLC's (LSE:IDS) boss Simon Thompson also came in for criticism, with the group of MPs having recalled him for a second grilling due to concerns he had given misleading answers when he claimed trackers were not used to measure the speeds of postal workers. The committee has now resolved that Thompson had misled the committee, "whether intentionally or inadvertently".
The committee said it has also requested that the Information Commissioner conduct an inquiry into the use of PDA data and "to ascertain whether any privacy or personal data rights have been infringed", with a report expected report by the end of the year.
Concerns come amid a heated pay and conditions dispute between owner IDS and workers, which has seen posties walk out for 18 days since August, costing the firm around £200mln.
As a result, the committee found that Royal Mail had begun prioritising parcels over letters, a move it dubbed “unjustifiable,” also pointing to an “unduly harsh” lack of sick pay during strike periods.
The group called on regulator Ofcom to launch an investigation of the previously nationalised courier and conclude the research by the end of this year.
It also urged the Communication Workers Union and Royal Mail to solve the industrial dispute which has seemingly become deadlocked, with 95.9% of voting members backing a new mandate for further walkouts last months.
“The issues at Royal Mail covered by this report have caused the committee great concern,” the report said.
“Royal Mail is a brand with a long and proud heritage […] We want to see Royal Mail on a firm and sustainable footing for the future.”