Integrated Remuneration Plan key aspects

Key aspects

1.    Modernization, integration and rationalization of the UPU remuneration systems:
  • Review the remuneration of basic services, in particular the methodologies that underlie the setting of the basic rates for letter-post, parcel-post and EMS items;
  • Further integrate and align the remuneration systems for items containing goods, i.e. small packet letter-post items and parcel-post items, to achieve more equitable, competitive, cost-based remuneration for items containing goods within the lightweight segment below 2 kilogrammes.
2.     Review the remuneration of all (supplementary) service features:
  • Review and modernize the remuneration of supplementary services, reflecting the product value of these services relative to other services;
  • Examine the costs associated with the proposed product portfolio, in particular for basic, supplementary and add-on services.
3.     Drive simplification of the remuneration systems, address the market-distorting effects of the remuneration systems and further progress the work towards a single TD system:
  • Review transition aspects by addressing a number of discrepancies in the transition system that could threaten postal traffic, causing it to be diverted or encouraging remailing practices;
  • Facilitate integration and transition to a single remuneration system for TD purposes through proposals that result in a further reduction of the number of groups in the TD classification system.
4.     Incentivize quality of service and operational improvements that enhance customer, operational and supply chain visibility of all items, in particular those containing goods, travelling through the UPU network:
  • Review pay-for-performance systems and ensure that they remunerate meaningful service features, reward quality of service performance and improvements and compensate sending and destination DOs for compliance with market and supply chain requirements, such as reliable capture and exchange of tracking data events and EAD;
  • Implement procedures that achieve operational efficiency such as statistical sampling and format separation.