DMA says Royal Mail strike could cost DM industry £10m
The two-day Royal Mail strike which started today could cost as much as £10m in averted direct mail campaigns, the Direct Marketing Association has said.
But the cost could be more severe if disruption continues beyond the planned strikes today and tomorrow with advertisers likely to switch media away from direct mail, the industry body warned.
Its research during the last strike found that 20% of all marketing campaigns (all media) were cancelled or postponed and 20% of advertisers changed media channel as a result of the strike.
The DMA has been vocal in its criticism of the strike and its chief of membership and brand, Robert Keitch, met with Peter Mandelson's chief adviser to implore the government to intervene.
“Strike action will deal a severe body blow to every company that relies on the post to issue invoices, collect payments and market their products and services to their customers," Keitch said before the strike. "With the economy being a fragile as it is, strike action will cause untold harm to UK plc.”
The Communications Workers Union, which is behind the call for strike action, said the union had carefully considered the impact the strike will have on other industries.
The spokesperson said: “The move to strike is entirely due to the actions of Royal Mail. We have made offers to Royal Mail which have been rejected and now Lord Mandelson is throwing his weight behind our position.
"This was a completely avoidable strike so we will unfortunately have to put the blame in Royal Mail’s court, especially as a result of the behaviour of Mark Higson, the managing director yesterday and his damaging letter which he sent which meant we could not call off the strike action this week.”
Are your clients/advertising plans being affected by the industrial action? How are you beating the strike? Tell us in our comments section below...