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.”