Private delivery company Whistl has issued redundancy notices to 2,000 workers after suspending its delivery service.
Whistl—previously known as TNT—offered end-to-end delivery of business post such as bills in London, Liverpool and Manchester.
It had planned to expand to Edinburgh, Glasgow and Birmingham.
But Lloyd’s bank’s private equity arm LDC refused to fund it because of “ongoing changes in UK postal market dynamics”.
Whistl continues to operate a postal service—but will rely on Royal Mail to make the actual deliveries.
Merlin Reader is an area delivery rep in London for the postal union CWU. He spoke to Socialist Worker in a personal capacity.
He said, “Obviously this shows the market doesn’t work. The regulator Ofcom is going on about how inefficient Royal Mail are—but at least we’re delivering the mail.
“If Whistl pulls out of the postal market completely that’s a huge amount of work going back to Royal Mail.”
He added, “Two thousand people losing their jobs is not a good thing. But it’s an opportunity to improve their conditions by getting them into Royal Mail.
“The CWU needs to push Royal Mail to recruit those people into the business, where conditions and wages are better.”