Postal strike hits small businesses

By HELEN LOVELESS, MAIL ON SUNDAY ENTERPRISE EDITOR
Updated:

 

Growing businesses face bearing the brunt of further postal strikes after the Communication Workers Union confirmed last week that it would not back down in its demands over pay and conditions for Royal Mail workers.

Tracey Hoather

Strike a bargain: Industrial action has helped Tracy Hoather's firm

A national strike is now planned for as soon as Thursday.

With delays potentially costing small firms hundreds and even thousands of pounds, many are being forced to look elsewhere to ensure that goods arrive on time.

But for a few, the strike has helped to boost business.

Tracy Hoather, 44, is boss of Same Day, a private delivery and courier company in Knutsford, Cheshire, which she set up 18 years ago.

The firm specialises in delivering anything from letters to huge pallet-loads of goods on the same day. About 80% of Tracy's business is long-distance courier work and she employs 48 drivers based around the country. Charges start from £25 for a delivery.

Tracy says: 'When there is a strike we do see a lift in business, though the companies that really see a big boost are those doing next-day deliveries.'

But, as with thousands of other small firms, the postal strike will also have a negative effect on Same Day. Tracy says: 'We have problems getting payslips out on time and inevitable delays with invoices.

'Further strikes are really going to hit small firms hard, just as we were all preparing for a steady push in the run-up to Christmas. This is yet another blow for small businesses.'

Phil McCabe, spokesman for the Forum of Private Business, says there has been a surge in members contacting the FPB with concerns-about the strikes. 'Small businesses rely on the postal service and this strike will cause many severe disruptions,' he says.

'Unfortunately, there are few alternatives because other providers still have to use Royal Mail for the back-end delivery service to homes and businesses.

'We advise firms to keep informed by monitoring Royal Mail's website and using electronic communications wherever possible, especially to make payments or to bill customers. It is also possible to scan and email invoices.

'It's important to plan ahead now and send out time-sensitive mail before the strike occurs to minimise its impact. Maintaining regular contact with customers and clients helps, and even consider whether it's worth the cost of upgrading to first-class delivery.'

Encouraging customers to pay electronically rather than by cheque is key, with some firms offering incentives to those who settle their bills in this way.

According to the Essex branch of the Federation of Small Businesses, a growing number of their members are turning to the internet to send out promotional and marketing material, for example through email newsletters and web catalogues, rather than relying on the post.

There are private alternatives for firms who have to send out goods to customers, but they cost more than Royal Mail and may not be financially viable. For example, Pay Per Parcel is a nationwide courier service with single-delivery collections costing from £6.50.

MyHermes operates a door-todoor courier service delivering goods up to 15 kilograms with prices from £3.99 for deliveries within three to five days.

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