Mails Distribution Agreement: Consultation closed on 6 June

Mails Distribution Agreement: Consultation closed on 6 June

Email from CEO Nick Read to Postmasters:

Hello everyone,

As you may be aware, our six-week consultation seeking your views on the proposed new Mails Distribution Agreement (MDA2) remuneration, closed yesterday. The main change in the proposal is that remuneration moves from a volume to a value-based approach.

This is the first time we have run a consultation on this scale, with the ambition of speaking to you all on a one-to-one basis. Thank you to the 7,884 Postmasters we directly spoke to and 958 who submitted feedback electronically.

We have already responded to some of your feedback, extending the consultation period by two weeks and providing a monthly comparison of your remuneration under the proposed new value-based structure, versus the old volume-based structure. In order to give us all more time to review those comparisons when out of lockdown, we also delayed the proposed implementation date and extended our implementation benefits payments by three months. This means new rates will apply from April 2022 remuneration (March trading), while also ensuring that no Postmaster is worse off this financial year.

Over the summer, we will analyse all of the comments we’ve received and continue to assess the MDA2 proposal against post lockdown trading patterns in your branch. We will engage with multiple stakeholders including our Board, with our two new Postmaster Non-Executive Directors, before confirming the results of the consultation. We will communicate the final changes in September.

Throughout this period, we will also work with any branches that could potentially see a bigger impact as a result of the proposed changes and will ensure appropriate support for your business.

You’ll have heard me talk about my intent and direction for the Post Office by 2025. My main priority as Chief Executive is to re-build the relationship with Postmasters and help you run a successful business, which thrives in your community. Consulting with you on the proposed mails remuneration structure and responding appropriately is an important part of that.

Please accept my sincere thanks for taking the time to work with us, outlining any concerns you might have. We’ll keep you updated on our progress.


 

 

We have been consulting with Postmasters on the remuneration for the second Mails Distribution Agreement.

Consultation progress

As at 4 June, Area Managers have spoken to 7,878 Postmasters. Your Area Manager will contact you to talk through the proposed remuneration structure. You can share your views or suggestions with your Area Manager or through our formal consultation process on this link.


Your latest questions

Some of the recent questions asked by Postmasters are below. Answers to these questions and many others are available in our full Q&A here.

  • For items such as Home Shopping Returns, P739’s and other fixed fee transactions, will these rise with inflation or will these payments remain fixed for 11 years (and therefore reduce in real terms due to inflation)
  • You mentioned a forecasting tool that our Area Managers can provide – can you explain what this is for please?
  • How long will I receive the Interim Tariff Payment for?

The consultation ended on Sunday 6 June.

Visit our MDA Consultation microsite for more information, videos and Q&As