Prospect of job cuts for Post Office

Prospect of job cuts for Post Office

The UK’s Post Office may be looking to cut hundreds of jobs in its cash handing business, according to the Communication Workers Union (CWU). In a statement issued today (17 May), the CWU said: “Over 500 people working in Post Office Supply Chain – delivering cash and valuables to post offices and other businesses, as well as those processing cash – are threatened with the axe, after this morning’s shock announcement by the company’s chief executive Paula Vennells.”

CWU assistant secretary Andy Furey said that the proposed cutbacks amount to some 50% of the supply chain workforce. Furey said that when taken together with the Crown Office franchising programme, this could mean “over 1,000 jobs are being slashed by the Post Office”.

Furey continued: “The Supply Chain job cuts have come as a direct result of the Post Office announcing they’re voluntarily pulling out of external CViT work – which is an almost unbelievably bad business decision.”

The CWU General secretary Dave Ward added: “With this latest round of job losses, the management of the Post Office has to face the facts that it is in crisis and heading for ruin.”

The CWU statement said that Post Office reps and branch secretaries from across the UK will be meeting in central London next Monday (23 May) to decide their response to the proposals.

Post Office did not respond directly to the claims made in the CWU statement, arguing that it had to discuss the proposals with its staff first. However, the company did send a statement to Post&Parcel this morning, in which it quoted a spokesperson as saying: “We are currently briefing the teams affected by proposed changes in our supply chain. These people should of course be the first to learn of our proposals so we cannot comment further until these briefings are complete.

“It is regrettable that the unions have chosen to comment as they have before this has happened and at the start of a consultation process in which we hope they will be fully involved to represent their members.

“As part of our journey towards building a commercially sustainable Post Office, we are looking at every aspect of how we operate. It’s our responsibility to ensure that we have a business that is set up to thrive over the long term, and can continue to provide important services to communities all over the UK.”

Commenting on today’s developments, Connor Campbell, a senior market analyst at www.spreadex.com, said: “Since splitting off from Royal Mail back in 2012 things have been a bit difficult for the Post Office. The latest move only seems to reinforce that view, with the company set to cut 600 jobs in its cash handling business. That comes on top of an expected 500 loss in positions as it franchises 39 of its stores, with the Post Office continuing its struggle to find a place in its post-Royal Mail world.”

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