Dec 13 (Reuters) – Britain’s media regulator, Ofcom, has fined Royal Mail, owned by International Distribution Services (IDS), £10.5 million ($13.26 million) for failing to meet delivery targets over the past year. This is the second fine imposed on the company, following a $6.9 million penalty in November 2023 for similar performance issues.
Ian Strawhorne, Director of Enforcement at Ofcom, stated that while Royal Mail has provided an improvement plan and some progress is being made, it needs to act faster to meet the expectations of its customers.
IDS attributed its performance issues to financial challenges and delays due to last year’s union strikes. However, Ofcom dismissed these as insufficient justifications for the poor service.
Royal Mail’s parent company, IDS, expressed hope that a forthcoming consultation in January would enable necessary changes to be implemented by the summer. Following a recent budget warning, IDS also flagged the possibility of price hikes and further automation to address its financial pressures after returning to profitability in the first half of the year.