Consignia plays down prospect of huge job cuts

The British national post operator Consignia played down on Wednesday the prospect of up to 30,000 job cuts, as unions threatened strike action.

Consignia provoked a union backlash on Tuesday after its director general, John Roberts, told a government committee that the group, formerly called the Post Office, might slash 15 percent of its staff of 200,000.

The losses, which would follow about 10,000 jobs already cut this year, would be part of a cost-cutting plan aimed at saving 1.2 billion pounds (1.9 billion euros, 1.7 billion dollars).

But Consignia said Wednesday that no final decision had been made, adding that it hoped any losses would come through natural wastage.

“What we have said — and what remains unchanged — is that Consignia needs to cut its cost case by 15 percent by April 2003 to ensure the company gets back into profit,” Roberts said in a statement.

“What I said yesterday (Tuesday) at the Select Committee was that if the 15 percent was applied to our 200,000 staff, it could translate into up to 30,000 people.

“But that is speculative. We are not yet in a position to put to our unions firm proposals on what impact cost savings will have on jobs. There is no figure on the number of jobs to go by April 2003,” he added.

The deputy general secretary of the Communication Workers Union, John Keggie, earlier gave the postal group until Thursday to remove the threat of such a large-scale cutback.

Keggie had said if his demand was not met he would recommend to his union’s executive that a vote on strike action should be held in the New Year.

“We are making it clear that there will be no strike before Christmas, but unless they change their view we will have to take strike action to defend the service in the long term for the customer,” he said.

It was not immediately clear whether the latest statement from Consignia would be enough to avert strike action.

The Manufacturing, Science and Finance Union, which represents 15,000 managers and senior managers within Consignia, urged the government to help the group through the financial crisis.

Consignia is a listed company, but its capital remains in the hands of the state.

But the government has rejected its calls.

Prime Minister Tony Blair told parliament: “It is a matter for the company and the unions. We gave the commercial freedom to the Post Office that people wished for.

“The Post Office does face an extremely challenging and difficult time.”