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FSB warns of Royal Mail strike costs

Thu, 29 Oct 2009

FSB warns of Royal Mail strike costs Small companies could lose between £500 and £5,000 as a result of the national postal strikes, it has been claimed.

According to a study conducted by the Federation of Small Businesses (FSB), 46 per cent of firms expect to incur losses due to the current Royal Mail workers' industrial action.

Some 42 per cent said they could lose trade in the approach to Christmas, while 40 per cent claimed their business reputation could be damaged.

John Wright, national chairman of the FSB, said national postal strikes have "a devastating impact" on already struggling small businesses.

He stated: "The wildcat strikes across the regions have already cost small firms dearly, with many predicting the cost to their business reaching several hundred pounds, but these national strikes are having a much more damaging impact.

"Small firms rely on the Royal Mail to send their business post but they are caught in a classic Catch-22 situation."

Mr Wright said many are considering deserting the Royal Mail because the service is unreliable, but at the same time they are unable to afford alternative carriers.

IT PRO technology editor Benny Har-Even claimed last week that small firms may turn to the internet for post alternatives if the Royal Mail proves to be unreliable.

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