Amazon, one of the worlds largest online retailers, may be about to ditch the Royal Mail ahead of what could soon be national strike action by UK postal workers. According to the Guardian newspaper, Amazon has switched to HDN, the Home Delivery Network. It follows criticism by many retailers and small businesses that sporadic strike action at Royal Mail in recent months, particularly in London, was having a devastating effect on trade. According to the Times, Amazon denies the Guardian report but says it is putting alternative plans in place in the event that the dispute deteriorates further.

Royal Mail bosses last month warned that continued disruption to services would have long term consequences for the business and urged the CWU to abandon all strikes, continue talks, and concentrate on delivering in the run up to Christmas.

The Communication Workers Union, which recently tabled a motion for an emergency resolution to the growing Royal Mail pension deficit, is determined to see major changes made to Royal Mail's modernisation plan which it says is about cutting services and overloading postal workers with unrealistic targets. Despite over 70 meetings between Royal Mail management and union officials, the dispute continues.

Steve Lawson, editor for Hellmail postal news said:

"As we have said for some time now, Royal Mail's biggest threat in more recent years is from itself - not competition or electronic media, although they too have had an impact. Royal Mail is rotting from the inside and in the process losing the respect of business and domestic customers. The longer the arguments go on about the way modernisation should be carried forward, the greater and more urgent will be the need to do so.

"Royal Mail letters even now only contributes around 1% to group profits and whilst this continues, customers will simply look for and welcome newer forms of communication. One has only to see the kind of systems coming online now such as virtual mail boxes, or the Zumbox in the United States which actually works on house numbers, to realise just how important it is for Royal Mail to get on with delivering if it is to survive.

"Small businesses in particular cannot afford to gamble when it comes to despatching items to customers and many are already switching to DHL and others to ensure deliveries get through. They may cost more but they are at least functioning and in business that matters. Patience is clearly wearing thin and for many private operators, this situation is proving to be a bonanza. Royal Mail customers are not interested in 'why', any more than I would be interested in a row going on in the kitchen of a restaurant that still had not served me a meal I had ordered. My response would be to leave and never return - thats how business works." he said.

There were strikes at Peterborough yesterday which are expected to continue through today and into tomorrow. Today (Thursday) will see strike action in Bristol.

On Friday, postal workers at Burslem and Kilmarnock will walk out with lorry and van drivers at Carlisle, Coventry, Chelmsford, Hatfield, Northern Home Counties, Leeds, North East Regional Distribution Centre, Nottingham, Swindon, Warrington and the North West Regional Distribution Centre, also expected to stop working.

© Hellmail.co.uk (07 October 2009)

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