'End of an era for Post Office', says CWU
Responding to confirmation of separation of the Post Office away from Royal Mail Group, the Communication Workers Union welcomes confirmation of a 10 year commercial contract but urges caution over claiming success and raises concerns over the sustainability of jobs and services across the network.
Billy Hayes, CWU general secretary, said: "This announcement paves the way for the end of the Post Office as we know it. It's the end of an era and an unprecedented step by the government - we're not aware of any other country which has severed the retail post office network away from the main mails, deliveries and logistics part of the business. When people think of the Post Office they think of the whole mail network from post office to postman, sorting and delivery - but not any more.
"Ed Davey's optimism is of course welcome but we think it is too early to claim success for an initiative which is untested, unprecedented in global postal industries and which has many uncertainties ahead - mutualisation for example. The new 'Locals' model is something which most customers and postmasters would argue does not represent progress as it in fact reduces access to services.
"We're relieved that government has at least taken on board our arguments that a minimum 10 year inter-business agreement between Royal Mail and the Post Office was needed to secure access to products and services, and of course revenue for post offices. Without our lobbying last year and the intervention of MPs from all parties this would not have happened. The irony of course is that a commercial agreement would not be necessary if the government wasn't separating the Post Office from Royal Mail.
"The future for the Post Office is less than clear. While some new contracts have been won they don't replace the huge contracts which have been lost. The 'Green Giros' benefit payment contract ends this year and National Saving and Investment products are being pulled out of post offices. These brought benefits to the whole network and their loss is already being felt by postmasters up and down the country.
"While little material difference will be felt today, from the separation date of 1st April Post Office staff will have questions and concerns about their job security and the protection of the their pay, pensions and employee benefits. We are continuing to do everything possible to protect both jobs and post office services."
CWU represents workers in Crown post offices, postmasters and staff across Royal Mail Group.
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Notes to editors:
- The 'Green Giros' contract was worth £20 million to the Post Office.
- The UK Border Agency contract - worth around £6 million a year - is the most significant new contract to be won by the Post Office but it only affects 104 Crown Post Offices - a fraction of the overall post office network.
- Local authority contracts are welcome but piecemeal and are not delivering financial security for the whole network. Local authorities are also seeing their funding cut so there is a question over whether they will be able to find funds for post offices.
- The Junior ISA provided in partnership with the Bank of Ireland is only available online and so will not help improve footfall into the post office network.
- NS&I products, with the exception of Premium Bonds, are being taken away from the Post Office this year despite their popularity. There is now concern for the of future access to Premium Bonds through the Post Office too.
- The Post Office 'Locals' model involves vastly reduced services being provided from existing retail outlets such as petrol stations and convenience stores and in some instances is so limited that posting parcels is not available.
- There is and was always an inter-business agreement in place between the Post Office and Royal Mail but the new commercial contract has had significant involvement of legal teams from both organisations adding cost and bureaucracy to a system which was already working well.
For more information please contact:
Sian Jones, CWU press office, t: 020 8971 7267, m: 0779 3314249 e: sbjones@cwu.org
