Postal workers may strike over Royal Mail vehicle fleet sell-off
2 articles:
1. THE ROYAL Mail and Parcelforce yesterday put their entire 40,000-
strong vehicle fleet up for sale in a move denounced by unions as further
evidence of the creeping privatisation of postal services. Consignia, the group formerly known as the Post Office, said its
preferred option was to form a joint venture in which it would retain a 51 per
cent stake. But a spokesman added that an outright sale of the fleet remained
an option. He denied the move was linked to privatisation, insisting that
Consignia's main aim was to operate the fleet more commercially and
economically. But the Communication Workers Union warned that it would oppose the
plan "legally, politically and industrially". The union is examining whether
there are grounds for balloting members on industrial action. The fleet sell-off is the most significant step taken so far to
outsource what Consignia describes as "non-core operations". Previously, it
has formed a joint venture with Compass to provide catering services at
sorting and delivery offices and is studying plans to outsource its
engineering and facilities management arm, Romec. The vehicles division consists of 30,000 Royal Mail vans and trucks
and 10,000 Parcelforce vehicles, which are used to collect letters and parcels
and trunk them around the country. It also operates a network of 180 workshops
and depots. Consignia said the 1,700 staff directly employed by the division would
transfer to the new owners of the business. But the 40,000 staff that drive
the vehicles and collect letters would continue to be employed by Royal Mail
and Parcelforce. "This is nothing to do with privatisation – the ownership of Consignia
is a matter for government and that has not changed," a spokesman maintained.
"What this is all about is taking a sensible commercial approach to support
facilities currently within the organisation. It makes business sense to look
at whether some functions remain in-house or are sourced in a different way." But John Keggie, deputy general secretary of the CWU, pledged to
oppose the move "in the interests of the workforce, the industry and the
public". He added: "We have tried without success to convince Consignia not to
go down this road, which we believe will be to the detriment of our members
and the business. We have raised our concerns with Government and will insist
that it accepts its responsibilities." Consignia said it spent pounds 400m a year on the management and
operations of its vehicle fleet and hoped to achieve "significant cost savings
and efficiences" through outsourcing the division. But the spokesman
maintained this would not entail job losses. All staff directly affected would
be protected under employment legislation governing the transfer of employees. Consignia slumped to a pounds 3m operating loss last year after being
hit by an unprecedented level of wildcat strikes, disruption to rail services
and post office closures. In announcing the "disappointing" results,
Consignia's chief executive, John Roberts, warned that improvements in
productivity and a reduction in costs was needed this year to avoid job
losses. Outlook, page 13 Copyright: Independent Newspapers(UK) LimitedINDEPENDENT, 04th September 2001
2. CONSIGNIA, formerly the Post Office, is putting its entire 40,000-strong fleet of vehicles up for sale to save money. The company said yesterday it was seeking partners for the three main parts of its fleet services; heavy goods vehicles, light commercial vehicles and business cars. The sale will include familiar Post Office vans of the type driven by Postman Pat in the children's television series. Consignia will then lease back the vehicles, which will keep their Royal Mail branding. A Consignia spokesman said yesterday that the company saw significant cost-savings from the scheme, and would prefer a joint venture with potential partners in which Consignia would retain a 51pc share.
Gerry Smith, managing director of Consignia's Services Group, said: "Consignia will benefit from the expertise and buying power of one or more of the key industry players." However, a sale of the fleet would see 1,700 of Consignia's employees transferred from the organisation to the company managing the fleet, a transfer which is opposed by trade unions. These employees do not drive post vans, but work on vehicle leasing, fleet management and maintenance. John Keggie, deputy general secretary of the Communication Workers Union, said yesterday that he was taking legal advice about a ballot for industrial action on the matter. "We will take all steps necessary to oppose the Consignia board, in the interests of the workforce, the industry and the public," he said. His remarks come at the end of a one-month moratorium on strikes by Consignia workers, put in place after the publication of the Sawyer report into the problem of industrial action by postal workers. The organisation lost 62,000 days to industrial action last year, seriously affecting its performance and profitability.
DAILY TELEGRAPH, 04th September 2001
CONSIGNIA, formerly the Post Office, is putting its entire 40,000-strong fleet of vehicles up for sale to save money. The company said yesterday it was seeking partners for the three main parts of its fleet services; heavy goods vehicles, light commercial vehicles and business cars. The sale will include familiar Post Office vans of the type driven by Postman Pat in the children's television series. Consignia will then lease back the vehicles, which will keep their Royal Mail branding. A Consignia spokesman said yesterday that the company saw significant cost-savings from the scheme, and would prefer a joint venture with potential partners in which Consignia would retain a 51pc share.
Gerry Smith, managing director of Consignia's Services Group, said: "Consignia will benefit from the expertise and buying power of one or more of the key industry players." However, a sale of the fleet would see 1,700 of Consignia's employees transferred from the organisation to the company managing the fleet, a transfer which is opposed by trade unions. These employees do not drive post vans, but work on vehicle leasing, fleet management and maintenance. John Keggie, deputy general secretary of the Communication Workers Union, said yesterday that he was taking legal advice about a ballot for industrial action on the matter. "We will take all steps necessary to oppose the Consignia board, in the interests of the workforce, the industry and the public," he said. His remarks come at the end of a one-month moratorium on strikes by Consignia workers, put in place after the publication of the Sawyer report into the problem of industrial action by postal workers. The organisation lost 62,000 days to industrial action last year, seriously affecting its performance and profitability.
DAILY TELEGRAPH, 04th September 2001
