Tag: Communication Workers Union

Post Office confirms last remaining 108 Directly Managed Branches to be franchised

CWU:’This is the full privatisation of the Post Office via the back door’

POST OFFICE PROMISES ‘NEW DEAL FOR POSTMASTERS’

The Post Office has today (8 April) announced that following a Board decision it is moving to a fully franchised network as part of its commitment to deliver a ‘New Deal for Postmasters.’

Subject to Government funding, the last 108 Directly Managed Branches which are operated by the Post Office will be franchised by the autumn. This means that those communities that currently have a Directly Managed Branch in their area will continue to be able to access Post Office services either at, or near to, the same location.

In November 2024, the Post Office announced its five-year Transformation Plan to deliver a ‘New Deal for Postmasters’. Subject to Government funding to enable the Post Office to deliver its plan, Postmaster remuneration will increase by an additional £250 million a year by 2030.

The Post Office confirmed in November that the future of its Directly Managed Branch network would be under review. Directly Managed Branches generate a fully allocated loss (including central and support costs) of over £40 million each year.

Following consultation with unions and reviewing options with the Postmaster Consultative Council, a decision was taken by the Post Office Board to move to a fully franchised network in order to help fund increases in the remuneration Postmasters receive.

Nigel Railton, Post Office Chair, said: “Moving to a fully franchised network is one part of enabling the Post Office to deliver a ‘New Deal for Postmasters’, helping to create a long-term, sustainable future for the Post Office.

“By franchising these branches, we are protecting access to our services for communities right across the UK and realising £40 million worth of savings that will enable us to uplift postmasters’ remuneration by up to 10%.

“Over the coming months, we will continue to work with our unions to ensure that we treat our staff working in these 108 branches with care and respect through this transition, consulting with them on proposed changes.

“The 108 Post Offices will either stay in the same location where possible or be located close to the existing location, meaning customers will continue to have access to a full suite of products and services.”

The Post Office remains committed to meeting the current requirement to have a minimum of 11,500 branches across the UK and to meet the six Access Criteria set by Government.

Post Office will work with franchise partners with a clear track record of successfully running Post Office services or similar customer-focused retail to ensure communities in these 108 locations will continue to receive a high quality of service once their Directly Managed branch is franchised.

Further details on proposals will be shared with local communities and stakeholders for individual branches in the coming weeks.

NINE branches in Scotland are at risk of closing, including two in Edinburgh:

  • Edinburgh City
  • Glasgow
  • Haddington
  • Inverness
  • Kirkwall
  • Saltcoats
  • Springburn Way
  • Stornoway
  • Wester Hailes

Responding to announcement of the franchising of the remaining 108 Crown Post Offices, CWU General Secretary Dave Ward said: “The Horizon Scandal and the damage it did to thousands of individuals and the reputation of the Post Office should have been a wake up moment for the whole company. It should have delivered a complete shift in approach, ethos and engagement with frontline workers.

“The news today that the Post Office will push ahead with the closure of 108 Crown Offices with a loss of 1,000 jobs shows they have learned absolutely nothing from the scandal.

“The Post Office’s claim that these community services will be maintained by their failed franchising model is laughable to anyone who has seen their local Post Office services reduced to the back of a shop. The sell-off of WHSmith last week shows just how fragile and ill thought out this model is.

“This is the full privatisation of the Post Office via the back door.

“The role of the government must also be examined. This is a continuation of the hands-off role played by the Tories. We call on Labour to immediately intervene and examine alternative options. Now more than ever, we need to seriously look at creating a joint venture between Royal Mail and the Post Office – two businesses that should never have been separated.

This is a major test for this government ahead of introduction of the employment rights bill. It is inevitable that the news today will lead to further scrutiny of our relationship with the Labour Party.

“Our members and Branches will see this as a crucial moment ahead that will truly test the link between Labour and the trade unions who created the Party.”

Labour MP Rebeccah Long-Bailey said: “The news that all remaining Crown Post Offices will be franchised is a devastating blow to communities like Salford, and I am extremely angry and disappointed that this has been allowed to happen.

“It is a deal done behind closed doors with no community engagement.”

Government approves Royal Mail takeover by Czech billionaire

UK Government reaches legally binding agreement with EP Group that protects Royal Mail’s workers and key services whilst keeping it headquartered in the UK

  • Business Secretary reaches agreement with Royal Mail’s prospective new owners after in latest example of government working hand in hand with private sector to improve crucial public services.   
  • Agreement backs Government’s Plan for Change, creating the strong foundations needed in Britian’s supply chain to kickstart economic growth and deliver for workers.  
  • Deal protects workers and key services whilst seeing Royal Mail continue to be headquartered in Britain, securing jobs and tax receipts in the UK.  

The Business Secretary, Jonathan Reynolds, has today [16 December] received legally binding commitments from Royal Mail bidder Daniel Křetínský that are intended to secure the long-term, sustainable future of Royal Mail whilst protecting crucial services for millions of customers across the UK.  

This significant agreement, between the Department for Business and Trade and Daniel Křetínský’s EP Group, contains commitments that protect, and secure investment in, Royal Mail’s postal network which is important to everyone from small business owners in Southampton to online shoppers in Shetland.  

These commitments deliver on the Government’s Plan for Change, kickstarting economic growth by providing stability to a national institution that strengthens the foundations of Britain’s domestic supply chain and delivers better public services to people across the whole country. 

Business Secretary Jonathan Reynolds said: “For too many years progress on securing a stable future at Royal Mail has stalled, but from day one we have been committed to providing a secure future for thousands of workers and customers. 

“Today’s agreement is yet another example of this Government’s commitment to working hand in hand with business to generate reform give respite to people right across the UK, as we are working towards ensuring a financially stable Royal Mail with protected links between communities other providers can’t reach.

“I’d like to thank EP Group and Daniel Křetínský for their constructive approach to our discussions and their commitment to protecting this national icon. I look forward to working with them to fix the foundations and ensure Royal Mail continues to deliver for the communities and businesses who rely on it most.”

Recognising the importance of Royal Mail as an iconic national institution, the government has negotiated a ‘Golden Share’ which will ensure that, with very limited exception, the headquarters of Royal Mail cannot be moved abroad and that Royal Mail cannot change where it pays its taxes, in either case without UK government approval.   

These restrictions will apply to any future owners of Royal Mail and, alongside other commitments to the brand and cypher, secure Royal Mail’s identity as an iconic British institution whilst also allowing it to operate as a fully private company without day-to-day government interference.  

EP Group have also committed to honour any new agreements entered into with the postal unions, recognising that workers should be placed at the heart of a sustainable Royal Mail.   

After months of constructive engagement, these legally binding commitments were voluntarily offered by EP Group in recognition of the significant contribution that Royal Mail makes to Britain’s national identity and the importance that it has in everyday life in the UK.   

EP Group Chairman Daniel Křetínský said: “EP Group is very pleased to have reached this historic agreement with the Business Secretary to safeguard the future of Royal Mail, under EP Group ownership.   

“We would like to thank the Business Secretary for the constructive negotiations that have resulted in unprecedented commitments and undertakings that demonstrate the high regard EP Group has for Royal Mail as an institution, the service it provides to millions of UK homes and businesses, and Royal Mail employees.  

“EP Group is a long term and committed investor with a mission to make Royal Mail a successful modern postal operator with high quality service and products for its customers. We look forward to delivering on this mission alongside our partners in government.”

Millions of small businesses and consumers across the country rely on Royal Mail for everything from magazines to medicine deliveries, which is why protecting its future following any takeover is critical.   

The commitment we have offered include significant financial safeguards including assurances around financial investment and restrictions on value extraction linked to the financial strength of the Royal Mail business and the achievement of specific service level standards.  

Today EP Group has also announced that it has reached negotiators’ agreements with the unions representing Royal Mail’s workforce.

The Government welcomes the negotiators’ agreement and is confident that the constructive and collaborrative approach between the unions and the buyer can represent a restart for Royal Mail. 

Postal Services Minister Justin Madders said: “We have agreed these commitments with EP Group with the intention of securing the best outcome possible for Royal Mail’s customers, incentivising high performance and protecting the important services communities rely on.  

“Royal Mail’s workers will also play a crucial role in getting the company back on track, and I’m pleased that EP Group and the CWU have worked quickly to reach an agreement on their part in the takeover. 

“A sustainable Royal Mail is a successful Royal Mail, and through this agreement we’re paving the way towards a brighter future where it can be a source of national pride once again.”

Communication Workers Union General Secretary Dave Ward said: “We are pleased to have reached a negotiators settlement with EP Group covering crucial areas such as job security, the governance of the company, a meaningful stake in the business for employees, restoring quality of service, legally binding commitments and improving the terms and conditions of our members. 

“This agreement provides the foundation to rebuild Royal Mail. These have been challenging negotiations but through the support of our members we have delivered what by any measure is a groundbreaking agreement which puts postal workers and customers back at heart of everything Royal Mail does.”

ROYAL MAIL GROUP TAKEOVER BID – NEGOTIATORS AGREEMENT REACHED BETWEEN CWU AND EP GROUP

Dear Colleagues 

Further to last week’s national briefing, CWU branches, reps and members would have seen this morning’s announcements setting out that EP Group and the government have reached agreement on a deed of undertaking, which contains legally binding guarantees from EP Group over the future of Royal Mail. 

In light of this development, CWU is pleased to announce that we have reached a groundbreaking negotiators agreement with EP Group, subject to ratification by our Postal Executive. 

The key parts of the agreement covers:

•Job security commitments and new legally binding commitments to employees 

•Agreed principles on resolving a range of outstanding issues 

•The introduction of a radical new governance and business model

•A meaningful stake in the business for employees

•Restoring quality of service •improving the terms and conditions of our members.

•A commitment to a new plan to grow the business

•A complete re-set in employee and industrial relations. 

Ultimately the CWU will always campaign for Royal Mail to be returned to public ownership – but the reality is once it became clear the government would support this takeover – our role as a trade union was to do everything possible to protect our members.

Whilst many will fear Royal Mail falling into the hands of a foreign equity investor, the truth is every postal worker knows the status quo is what will kill off postal services in the UK.  The Royal Mail Group Board have been running the company into the ground over a sustained period and in the process have completely alienated their own workforce. It is time for a fresh start and a complete re-set of employee and industrial relations.

At this stage, the transaction is not completed and still has some formal stages to go through which include:

•Clearance under the national security act

•Clearance under European regulations

•Shareholders vote

It is likely that all of these processes will be cleared in the first quarter of 2025. 

NEXT STEPS FOR CWU

Subject to the document being cleared by our Postal Executive, we will be putting together a comprehensive engagement package this week including briefings for our branches, reps and members. 

We will issue further updates in due course. 

Yours sincerely,

Dave Ward  General Secretary 

Martin Walsh  Deputy General Secretary

No mail today: Posties strike over pay

Royal Mail postal workers are striking today in a dispute over pay. It is the first of four days of planned industrial action, with further walkouts also scheduled for 31 August and 8 and 9 September.

Letters will not be delivered on strike days and some parcels will be delayed.

Posties overwhelmingly rejected a pay increase offer of 5.5% with conditions attached. The CWU union, which represents the postal workers, is calling for a pay rise that more closely reflects the current rate of inflation.

Royal Mail has apologised to customers and said it has contingency plans to minimise the disruption.

It said: “We’re really sorry for the disruption that this strike action is likely to cause to you. We want to reassure you we will do everything we can to minimise disruption and get our services back to normal as quickly as possible.

“Royal Mail has well-developed contingency plans, but they cannot fully replace the daily efforts of its frontline workforce. We will be doing what we can to keep services running, but customers should expect significant disruption.”

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