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Royal Mail Group is the UK's dominant postal services
company as well as the country's biggest retailer, as a result of its national chain of post offices. Known until 2000 as
The Post Office, the company has for several years endured a stormy relationship with the British government, still its
effective owner. Competition from rival delivery companies increased dramatically during the 1990s, but Royal Mail was
prevented from responding in kind because of the commercial restrictions imposed by state control. Freedom, finally granted
in 2000, came at a high price. The renamed Consignia lost its biggest government contract, as well as its monopoly on
low-price mail delivery. Struggling to survive, the company changed its name again in 2002 and announced a three year
restructuring program, which resulted in record profits for 2005. By 2007, however, performance had again begun to slide,
further dented by a series of damaging strikes as workers protested over changes in terms and conditions.
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