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CWU on Post Office Mutualisation

4th July 2012

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CWU today (Wednesday) broadly welcomes the opportunity to be involved in the debate about mutualisation following the government's report into Post Office mutualisation, but has concerns, particularly as the future financial sustainability of the Post Office is far from assured.

The report follows last year's consultation on mutualisation for the Post Office, and takes on board the views of many participants, including the submission made by CWU. Of particular significance, the report establishes a Stakeholder Forum, which CWU expects to sit on. This is absolutely necessary as putting the workforce at the heart of the mutualisation debate is the only way success can be assured.

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Billy Hayes, CWU general secretary, said; "Today's report paints a positive future for the Post Office, but the suitability of a mutual model is still unclear. We're in favour of a successful operating model for the Post Office which delivers high quality services to communities across the UK, and if mutualisation can do that then that's great. We also agree with putting the workforce at the heart of the organisation.

"However, in our view, ownership hasn't been the problem for the Post Office. Sustainability is ultimately about business success and funding and we find it hard to see a loss-making organisation being mutualised. In addition, we understand there is a lack of clear support for mutualisation which will be problematic if the process is to be genuinely stakeholder driven.

"We are also concerned that the Post Office's strategy to move to greater financial stability via network transformation is flawed, with unplanned closures as a result of existing Postmasters (our members) losing vital income, via new contracts that remove up to £10,000 of their annual income. Without these postmasters the post office network is set to become a network of multiple retailers, which could prove contentious in a mutual setting."

Much of the finer details are being left to a Stakeholder Forum to determine: the public purpose, membership, the role for consumers and even what is meant by financially sustainability.

Billy continued: "Whilst we welcome participating in the forum in a constructive and positive way we have some reservations about the Post Office Managing Director chairing this body as it brings neutrality and independence into question. This is a missed opportunity by the government."

Read in full: Building a mutual Post Office: The Government's reponse.

CWU is the largest union in the postal sector and represents Post Office staff working across the network, including postmasters and staff in Crown offices.


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