Royal Mail to create 1,000 jobs at parcels business

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Royal Mail vans
Image caption,
Royal Mail's parcels business made up nearly half of its revenues in the last financial year

Royal Mail is to create 1,000 jobs in the UK over the next four years as part of a £75m investment programme for its parcels business.

A new parcel processing centre will open in Chorley in autumn 2013.

Two new depots will open in Cornwall and Hampshire while nine existing depots will be expanded or moved to larger sites over the next four years.

But the Communication Workers Union said Royal Mail's workforce would not increase, due to job losses elsewhere.

Royal Mail has cut about 65,000 jobs since 2002 as it attempts to modernise.

'Profitable growth'

Media caption,

David Stubbs, postal expert: "Royal Mail needs this type of investment to be modern, to be competitive"

The latest move is part of Royal Mail's strategy to expand its parcels business in the UK and overseas.

In the last financial year, it accounted for 48% of total revenues, excluding the Post Office.

The UK express parcels market is currently worth £5.8bn a year or 1.1 billion items.

"Our strategy is to convert the rise in parcel volumes into profitable growth. That means becoming a much more customer-focused company being run on commercial lines and investing in new, vital technology," said Moya Greene, Royal Mail chief executive.

Employment Minister Mark Hoban said: "It is great news that 1,000 new jobs will be created across the country as a result of this investment. We've now got a record number of people in employment and these jobs will provide welcome opportunities for people who are looking for work."

Dave Ward, CWU deputy general secretary, said: "In truth, this project has already been several months in the making and CWU is involved in talks about how and where these jobs will be created, including the possibility of people transferring from other parts of the group where jobs are being lost.

"These jobs will go some way to easing the impact of jobs lost elsewhere in the company as huge changes are brought in to address the altering profile of mail. Working with the CWU, Royal Mail - unlike many private mail companies - has created good quality, and secure jobs with decent pay, terms and conditions."

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