AP proposal to vary parcel fee

Many Parcel Contractors have received a letter from AP regarding a proposal to alter (reduce) fees paid to Parcel Contractors.AP apparently is proposing to introduce a new fee structure where Contractors can be paid on a sliding scale for multiple-parcel consignments. We understand that AP will make a commitment that no Contractor will be paid any less over the first six months under the new pricing scheme.AP claims in its advice to Contractors that it has carried out an analysis of parcel delivery costs. No mention is made of how or where the analysis was carried out.Under what authority is AP proposing to vary the contract? If you have received this advice from AP, do you agree with the proposed changes?AP notes that its aim is to increase its competitiveness when pursuing new business. While it is pleasing that AP is pursuing new business, it is disappointing that it sees fit to simply look for ways to pay Contractors less in order to drive efficiencies.Think very carefully before signing any agreement to vary your mail contract.You should also carefully read Clause 8 of the General Conditions of your contract. If AP uses this clause to reduce your payments, they must comply with the terms of Clause 8.2 regarding serving notice and meeting with the Contractor.