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Compensation of nearly £1m delivered to customers in region by Royal Mailv

ROYAL Mail paid almost £1m in compensation to customers in Yorkshire last year, new figures reveal.

The postal service, which is being riven by industrial action, coughed up 976,451 for complaints including loss, damage and delay in 2008-09 –up on about 960,000 a year earlier.

The bigger payout came despite the number of complaints in Yorkshire dropping by a quarter to 88,798. This meant, however, that the average compensation payment shot up to 27.29 from 20.55, as the price of mistakes became more costly.

Royal Mail insisted falling complaints were due to service improvements, but campaigners warned it could lose ground because of strikes by members of the Communication Workers' Union.

The Communication Workers' Union (CWU) is midway through a series of 24-hour strikes over pay, jobs and services. Thousands of postal workers will launch fresh action this week as industrial relations continue to worsen ahead of a national ballot.

Members of the union in areas including Leeds will walk out throughout the coming week in a long-running row over jobs, pay and services.

A spokesman for the TaxPayers' Alliance said: "While it's encouraging that the number of complaints against Royal Mail has dropped, it's disturbing to hear that individual payouts have risen.

"But with industrial action being taken by a few postal workers limiting the service available to all customers, no wonder the value of the compensation claims have sky-rocketed."

Of the Yorkshire customers who complained, 35,456 received a payout – meaning about 40 per cent of disgruntled customers were compensated. Almost 80 per cent of the compensation paid in the region was for lost items – 762,346.

Nationally, Royal Mail paid more than 13m compensation to customers, up slightly on a year earlier, although the number of complaints was down eight per cent.

A spokeswoman for Consumer Focus, which took over from industry watchdog Postwatch last year said: "Royal Mail has made progress in meeting delivery standards, but with high numbers of lost mail items there is obviously still room for further improvement.

"Customers rely on the postal service and strike action could cause people real inconvenience and might damage their confidence in the service, which might lead to complaints. Unions and management must work together to avoid any disruption to Royal Mail's service."

Industrial action is the latest blow to hit the service, which is also fighting plummeting mail volumes. Last month the Government halted plans for the part-privatisation of Royal Mail with Business Secretary Lord Mandelson blaming "market conditions".

A Taxpayers' Alliance spokesman added: "Businesses need their mail to be sent, and if the service keeps getting disrupted, it's Royal Mail, the taxpayer and ultimately the unemployed postal worker who suffers. The Government have dodged the important issues by shelving their part privatisation plans for the Royal Mail."

Royal Mail insisted its recent service quality was above target despite the strikes – beating its first class target and hitting its second class target in the five weeks to mid July.

Paul Tolhurst, Royal Mail's operations director, said: "More CWU strike action will do nothing but damage Royal Mail's ability to... preserve as many jobs as possible at a time when mail volumes are falling by almost 10 per cent year on year."

Clive Davenport, Federation of Small Businesses trade and industry chairman, said: "Industrial action by Royal Mail postal workers is one of the single most disruptive occurrences for a small business. The loss and damage of post can have a devastating impact on small firms which, in the worst case, lose trade and clients because cheques and invoices don't arrive on time."

A Royal Mail spokesman said: "Royal Mail handles around 75 million items every day and only a tiny fraction of customers tend to raise any concern or complaint with us – around one in 14,500.

"We deliver more than 98 per cent of letters and packets on or ahead of target but continue to take every complaint extremely seriously and are doing everything we can to modernise our operation."

Compensation paid 2008-9

Bradford: 131,541.00

Doncaster: 84,242.00

Huddersfield: 28,970.00

Harrogate: 19,711.00

Hull: 52,107.00

Halifax: 26,063.00

Leeds: 128,624.00

Sheffield: 322,490.00

Wakefield: 69,004.00

York: 104,699.00

Total 967,451.00


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