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Royal Mail pays out £1 million a month in postal compensation

The Royal Mail has confirmed it has paid out around £1 million a month in compensation in 2009 to customers who "lost their post" in the system. This is yet another blow to the UK government which is trying to build up the reputation of the Royal Mail and improve the company's finances ahead of a possible sale in 2010. However, this has been one of the most controversial privatisations in recent history with the unions and workers rising against the UK government and Lord Mandelson forced to abandon plans to sell off the business in 2009.

The finances of the Royal Mail are becoming a greater and greater concern to the UK government with a massive pension fund deficit and a operation which is profitable but is actually losing market share. It will be interesting to see how the company develops in 2010 because there needs to be a streamlining of the financial aspects of the company which will no doubt see significant job cuts in due course as new technology is brought into the group.

Despite the fact that strike action planned for Christmas was cancelled due to an "agreement" between the union and Royal Mail directors, there appears to be an underlying distrust between the two parties and many people expect renewed strike action in the New Year.

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