Postal services regulator Postcomm has suspended the Bulk Mail Compensation scheme, exempting Royal Mail from paying direct marketers compensation for industrial action taken between 2007 and 2008.

The regulator ruled that the strike action was a result of Royal Mail’s efforts to revamp its business and removed the firm’s liability to pay compensation to bulk mailers whose businesses were affected.

The Incorporated Society of British Advertisers (ISBA), which represents the interests of major bulk mailers, criticised Postcomm’s decision and called on the organisation to ensure that individual bulk mailers are offered fair compensation by Royal Mail in the future.

David Ellison, the ISBA’s marketing services manager, said: “We accept that Royal Mail’s own problems are deep-rooted and that they should not be discouraged from taking the necessary steps to transform and modernise their business.

“But our bulk mailer members, as commercial organisations, will be annoyed that they will not receive any compensation for the strike, which dramatically reduced the quality of the service they received.”

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