This Royal Mail strike is really something....

[chris_b]

46 minutes ago, tegs07 said:

I guess we really choose a side when we go for the cheapest option when sending a parcel!

 

In the past I was likely to vote with my wallet, but these days I'm more inclined to support the guy who is being screwed, particularly if his bosses are laughing all the way to their off-shore tax havens.

[Count Bassy]

57 minutes ago, chris_b said:

 

In the past I was likely to vote with my wallet, but these days I'm more inclined to support the guy who is being screwed, particularly if his bosses are laughing all the way to their off-shore tax havens.

Don't get me started on Amazon!!

[mikel]

I am with the posties, and the rest of the current striking workers. There is plenty of money in the system but most of It is in the hands of a few obscenely wealthy people, and their friends. We have raging inflation but it is caused by corporate greed, not inflationary wages. Most people are worse off in real terms than they were in 2008, and it looks like they have finally decided to fight back. 

[tegs07]

32 minutes ago, Count Bassy said:

Don't get me started on Amazon!!

The problem though is that Amazon are a ruthless but unbelievably efficient company. Their investment and innovation in technology, logistics and workflows have allowed them to totally dominate internet shopping. By contrast Royal Mail put bits of cardboard through your letterbox and you need to try and find time to go and collect it. Are Amazon nice people. Probably not. Are they efficient and bang up to date with the needs of modern consumers? I would say they dominate the market for a reason. This technological innovation and investment has not been matched by Royal Mail and one of the greatest companies in British history are losing ground. I support the right of the postal workers to strike but fear it will be another chapter in an ongoing decline.

 

 

Edited December 21, 2022 by tegs07

[tegs07]

1 hour ago, mikel said:

raging inflation but it is caused by corporate greed

Did the global corporations wait until 2022 to decide to be greedy? Wage price spiral is potentially inflationary but it’s not a major causal factor. The restriction of cheap credit*, geopolitical factors (war and sanctions) and supply constraints are far more important.

In terms of the workforce a strong labour market is a major factor in central bank’s decisions around interest rate rises. It is something a heavily indebted population needs to consider. I don’t think the average person could take interest rates at 5% in the current economic climate.
 

* The unwinding of Quantitative Easing, The start of Quantitative Tightening, the unwinding of the carry trade, increased yields on bonds, currency weakening etc etc 

Edited December 21, 2022 by tegs07

[Burns-bass]

3 hours ago, tegs07 said:

I guess we really choose a side when we go for the cheapest option when sending a parcel!

Totally agree! Alongside working as a writer, I also have a retail business and we solely use RM at the moment. Customers (did) prefer it.

 

The alternatives are, by and large, awful. Sending thousands of parcels a year gives you a fair evidence base to work from.

 

 

 

[Burns-bass]

1 hour ago, tegs07 said:

The problem though is that Amazon are a ruthless but unbelievably efficient company. Their investment and innovation in technology, logistics and workflows have allowed them to totally dominate internet shopping. By contrast Royal Mail put bits of cardboard through your letterbox and you need to try and find time to go and collect it. Are Amazon nice people. Probably not. Are they efficient and bang up to date with the needs of modern consumers? I would say they dominate the market for a reason. This technological innovation and investment has not been matched by Royal Mail and one of the greatest companies in British history are losing ground. I support the right of the postal workers to strike but fear it will be another chapter in an ongoing decline.

 

 

Amazon isn’t actually that efficient. It’s PR machine bangs out a load of BS about drones, robots and the like, but the majority of work is manual and performed by appallingly treated zero hours workers.

 

We all have a choice (including apathy). Had we all shrugged our shoulders and carried on working for our feudal masters, we’d have no pension, welfare state, weekends or even paid holidays. 
 

Personally, when we have years of this (high prices, stagnant wages and energy poverty) people will act. And I hope it’s as polite and pleasant as the striking workers I met in Bristol. I don’t think it will be…

[SteveXFR]

I believe companies should have to give inflation matching wage rises before they pay share dividends. The people who do the work to make the money should come first.

Average wage rises over the last decade have been below inflation so cannot have caused wage spiral inflation. The current inflation is caused almost entirely by the 20% increase in energy costs and the fact that Britain now has the highest energy costs in the world. 

[tegs07]

43 minutes ago, SteveXFR said:

I believe companies should have to give inflation matching wage rises before they pay share dividends. The people who do the work to make the money should come first.

Average wage rises over the last decade have been below inflation so cannot have caused wage spiral inflation. The current inflation is caused almost entirely by the 20% increase in energy costs and the fact that Britain now has the highest energy costs in the world. 

I concur re wages not being a primary causal factor around inflation. I do urge caution in regards to debt levels and interest rates. Bizarrely the labour market in the USA will have as much sway as the labour market in the UK as the FED are playing the fiddle we are all dancing to.

 

In terms of public debt this is something of concern. Borrowing costs are rising exponentially and as seen recently if the markets get spooked bond yields can spike dramatically causing mayhem in pensions, mortgages etc. I bang on about this a bit so excuse repetition but it’s something I have a real interest/concern about.

Edited December 21, 2022 by tegs07

[leschirons]

Well how bout that. Sent a pedal from our local post office, parcel of just under 1kg, 2nd class, cheapest option, two days ago on the 19th.  It arrived today I'm told. 

[mikel]

1 hour ago, tegs07 said:

Did the global corporations wait until 2022 to decide to be greedy? Wage price spiral is potentially inflationary but it’s not a major causal factor. The restriction of cheap credit*, geopolitical factors (war and sanctions) and supply constraints are far more important.

In terms of the workforce a strong labour market is a major factor in central bank’s decisions around interest rate rises. It is something a heavily indebted population needs to consider. I don’t think the average person could take interest rates at 5% in the current economic climate.
 

* The unwinding of Quantitative Easing, The start of Quantitative Tightening, the unwinding of the carry trade, increased yields on bonds, currency weakening etc etc 

The cause is a combination of sky high fuel prices, that impact almost everything that needs transporting, and sky high energy prices. The fact energy companies are making record profits means the price they are charging the public is simply profiteering. Nothing to do with wages. How can any country can claim to be first World when ordinary people have to use "Warm spaces" because they cant afford to heat their homes, and working people have to rely on charity, food banks, to eat. Its a disgrace. A change is needed. 

[tegs07]

16 minutes ago, mikel said:

The cause is a combination of sky high fuel prices, that impact almost everything that needs transporting, and sky high energy prices. The fact energy companies are making record profits means the price they are charging the public is simply profiteering. Nothing to do with wages. How can any country can claim to be first World when ordinary people have to use "Warm spaces" because they cant afford to heat their homes, and working people have to rely on charity, food banks, to eat. Its a disgrace. A change is needed. 

I think Putin’s war and Xi’s zero covid policy may have something to do with things alongside the billions created via QE during Covid (much of which flowed into assets and equities). A strong labour market and the actions of central banks are not governed by political parties and neither are yield spikes or sovereign debt crises. There are a host of issues that fall way outside of party politics that will threaten the livelihoods of your average worker during the next few years. It’s a time to be debt free, not beholden to rising debt repayment and with a positive balance of payments and sadly the UK is not in great shape. I’m not convinced that in the short to medium term any government can avoid a similar course of action. Longer term there is much that can and should be done.

 

I think people will rightly fight for better wages but I am cautious looking at interest rates rising and bond yields increasing as mortgages and pensions are also massive factors here.

Edited December 21, 2022 by tegs07

[mikel]

6 minutes ago, tegs07 said:

I think Putin’s war and Xi’s zero covid policy may have something to do with things alongside the billions created via QE during Covid (much of which flowed into assets and equities). A strong labour market and the actions of central banks are not governed by political parties and neither are yield spikes or sovereign debt crises. There are a host of issues that fall way outside of party politics that will threaten the livelihoods of your average worker during the next few years. It’s a time to be debt free, not beholden to rising debt repayment and with a positive balance of payments and sadly the UK is not in great shape. I’m not convinced that in the short to medium term any government can avoid a similar course of action. Longer term there is much that can and should be done.

So you deny energy companies are making record profits, as they themselves have admitted? I was not surprised in the least it was you who jumped in to defend the establishment. I mentioned nothing about politics, but carry on. 

[tegs07]

22 minutes ago, mikel said:

So you deny energy companies are making record profits, as they themselves have admitted? I was not surprised in the least it was you who jumped in to defend the establishment. I mentioned nothing about politics, but carry on. 

When supply is constrained prices go up. I know two of the companies that have  paid more in windfall taxes (Harbour Energy & Total Energy) have responded by cutting back on their R&D development in the UK so it’s not as straightforward as you would like. This will reduce energy security in the medium to long term.

 

If worrying about whether people lose their homes or pensions is defending the establishment then sure you have got me.

Edited December 21, 2022 by tegs07

[SteveXFR]

It's odd that skills shortages haven't lead to higher wages being offered. You'd think businesses would be fighting over the limited available workers to ensure they fill their vacancies 

[Marvin]

9 hours ago, Lozz196 said:

Not sure about all working practices that are being looked at but I can understand why RM want to change some - maybe this has already been changed, maybe it was a practice that only happened in the depot he worked at but it`s what used to happen, my mate who was a postman told me about it:

 

2 postmen, Paul & Pete.

Paul is running a bit short on funds so gets Pete to pull a days sickie.

Pete gets paid for this day whilst at home and not sick at all.

Pauls duty is 8am - 5pm. Always finishes his round by 11.30 so always home by midday.

As Pete is off Paul covers Petes duty after doing his own, is back at the depot by 3pm, is home by 3.30pm.

Paul is still at home an hour and a half earlier than his scheduled duty time.

Paul receives a full days overtime (at overtime rates) for covering Petes duty.

 

Now I can understand unions looking after their members and T&Cs, fair play, no-one wants to be run over rough-shod by their employer and rightly so unions look after their members, but the above, well  I can see why any company would want such T&Cs changed. 

 

 

 

 

That got stamped years ago, probably a decade ago or more.

[tauzero]

2 hours ago, tegs07 said:

Did the global corporations wait until 2022 to decide to be greedy? Wage price spiral is potentially inflationary but it’s not a major causal factor. The restriction of cheap credit*, geopolitical factors (war and sanctions) and supply constraints are far more important.

 

It's not a wage price spiral, it's a profit price spiral. Wages wouldn't fall behind prices if there was a wage price spiral, the relationship would stay the same. A major contributor is corporate greed and the unpleasant truth of capitalism.

[yorks5stringer]

A genuine question, can someone help me understand when a Govt or Energy provider says 'If you tax our windfall, it will affect our R&D'?

 

Surely a company makes projections and budgets based on oil/energy being a certain price ( or within a certain band). If things then go batsh*t crazy and prices double the windfall is just that, a windfall, unexpected and unbudgeted/allocated. Therefore these funds are not directed to R&D but to huge bonuses for bosses and increased dividends for shareholders?

 

Or am I missing soemthing obvious?

[tegs07]

20 minutes ago, yorks5stringer said:

A genuine question, can someone help me understand when a Govt or Energy provider says 'If you tax our windfall, it will affect our R&D'?

 

Surely a company makes projections and budgets based on oil/energy being a certain price ( or within a certain band). If things then go batsh*t crazy and prices double the windfall is just that, a windfall, unexpected and unbudgeted/allocated. Therefore these funds are not directed to R&D but to huge bonuses for bosses and increased dividends for shareholders?

 

Or am I missing soemthing obvious?

Total energies have cut investment in UK North Sea oil by 25% and Harbour Energy pulled out of a tender to drill I believe. You can google for full details. I think it’s because it’s not an exact science and no guarantee of money on investment. If when they get lucky they are penalised they get cross and flounce off taking their ball elsewhere. Temperamental divas the lot of them.

Edited December 21, 2022 by tegs07

[tegs07]

41 minutes ago, tauzero said:

 

It's not a wage price spiral, it's a profit price spiral. Wages wouldn't fall behind prices if there was a wage price spiral, the relationship would stay the same. A major contributor is corporate greed and the unpleasant truth of capitalism.

I have said several times that personally I think wage increases have only a marginal inflationary influence but a strong labour market is definitely something that is at the forefront of central bank policy decisions. As for inflation Im more in the camp that turning off the credit taps, increasing energy costs and massive supply chain disruptions are far more consequential than corporate greed. Corporate greed persisted throughout the low inflationary era of the 1990s and early 2000s.

[Burns-bass]

21 minutes ago, yorks5stringer said:

A genuine question, can someone help me understand when a Govt or Energy provider says 'If you tax our windfall, it will affect our R&D'?

 

Surely a company makes projections and budgets based on oil/energy being a certain price ( or within a certain band). If things then go batsh*t crazy and prices double the windfall is just that, a windfall, unexpected and unbudgeted/allocated. Therefore these funds are not directed to R&D but to huge bonuses for bosses and increased dividends for shareholders?

 

Or am I missing soemthing obvious?

R&D comes out of turnover, not profit so it’s BS.

 

Actually, that’s not entirely true. But the argument that taxing profits should affect R&D is effectively blackmail. It’s also nonsensical. These are business who invest in R&D to future proof their business. That shouldn’t bother any of us.

 

Their argument is that this tax will stop them from investing in sustainable technology, which is utter nonsense. They can watch as their business burns away or they can do something about it.

Edited December 21, 2022 by Burns-bass

[tegs07]

11 minutes ago, Burns-bass said:

R&D comes out of turnover, not profit so it’s BS.

https://www.reuters.com/business/energy/totalenergies-cut-uk-investment-by-25-after-windfall-tax-2022-12-01/

 

Harbour Energy 

https://uk.finance.yahoo.com/news/top-uk-oil-gas-producer-170000013.html

 

 

“During a meeting with Jeremy Hunt last week, the leading industry body Offshore Energies UK told the current Chancellor of the Exchequer that a 75% total tax rate “will undermine the ability of energy producing companies to invest in the homegrown oil, gas and wind supplies we need. Without this, we will be less secure and will import more energy – while losing the benefits provided by the domestic industry in terms of taxes paid, jobs supported and investment in the wind and hydrogen projects.”

Edited December 21, 2022 by tegs07

[Burns-bass]

12 minutes ago, tegs07 said:

https://www.reuters.com/business/energy/totalenergies-cut-uk-investment-by-25-after-windfall-tax-2022-12-01/

 

Harbour Energy 

https://uk.finance.yahoo.com/news/top-uk-oil-gas-producer-170000013.html

 

 

“During a meeting with Jeremy Hunt last week, the leading industry body Offshore Energies UK told the current Chancellor of the Exchequer that a 75% total tax rate “will undermine the ability of energy producing companies to invest in the homegrown oil, gas and wind supplies we need. Without this, we will be less secure and will import more energy – while losing the benefits provided by the domestic industry in terms of taxes paid, jobs supported and investment in the wind and hydrogen projects.”

I’m a member of one industry body (admittedly a tiny one) and there’s no chance you’d stand by and allow a 75% tax rate to be imposed without a fight.

 

That doesn’t mean it’s a bad policy.

 

Plus, should we really be encouraging more offshore drilling?

 

I said this on another thread. If they agreed to supply the UK at a reasonable rate, then fine - we’ll support you. If you then take it and enter the wholesale market, you deserve to get taxed to the eyes. 

[tegs07]

6 minutes ago, Burns-bass said:

I’m a member of one industry body (admittedly a tiny one) and there’s no chance you’d stand by and allow a 75% tax rate to be imposed without a fight.

 

That doesn’t mean it’s a bad policy.

 

Plus, should we really be encouraging more offshore drilling?

 

I said this on another thread. If they agreed to supply the UK at a reasonable rate, then fine - we’ll support you. If you then take it and enter the wholesale market, you deserve to get taxed to the eyes. 

I’m not arguing that its bad policy or something that is desirable. More that there are no easy answers and sometimes unexpected consequences can kick off a chain reaction that can start to snowball.

 

The UK is fast becoming a pariah for international investors and markets are prone to (extreme) overreaction when they smell blood.

Edited December 21, 2022 by tegs07

[yorks5stringer]

"The UK is fast becoming a pariah for international investors and markets are prone to (extreme) overreaction when they smell blood."

 

How does this explain the success of other Euro countires which have effectively nationalised their energy supply markets? Oh hang on, that's because most of them invest in the UK eg. EDF, Trains, Water, Wind etc etc

 

I'm always skeptical when a multinational cries 'wolf' except when they all said Br**** was a very bad idea...

Edited December 21, 2022 by yorks5stringer