The IBSA, which represents the interests of major bulk mailers, said it was disappointed by Postcomm’s decision to exempt Royal Mail from paying compensation for industrial action taken during 2007-08.

Royal Mail had requested that the Bulk Mail Compensation Scheme be suspended during industrial action and Postcomm upheld the request, having largely agreed with Royal Mail that industrial action was a consequence of Royal Mail’s urgent need to bring in reforms and modernise the service.

But ISBA, the voice of British advertisers, which represents the interests of major bulk mailers has reacted with dismay. Marketing Services Manager David Ellison said: “We accept that Royal Mail’s own problems are deep-rooted and that they should not be discouraged from taking the necessary steps to transform and modernise their business.

“But our bulk mailer members, as commercial organisations, will be annoyed that they will not receive any compensation for the strike, which dramatically reduced the quality of the service they received.

“They are rightly most concerned that Postcomm not only gave Royal Mail an effective exemption over the strike action during 2007-08 but also for potential strikes in 2008-09.

“The Postcomm decision seems to be very one-sided and to have listened to the arguments of Royal Mail while ignoring those of a key group whose custom helps subsidise its service to consumers.

“The decision to suspend the Bulk Mail Compensation Scheme puts the onus on individual companies to negotiate terms which protect them from potential disruption. ISBA calls on Postcomm to ensure that Royal Mail offers fair compensation to bulk mailers on an individual basis in the future.”

Tags: IBSA