Consignia chiefs put their 10% rise on hold
CONSIGNIA chiefs at the centre of a “fat cat” pay row today caved in to pressure and turned down a 10 per cent rise.
The planned increases were for chief executive John Roberts, who earns £205,000, and head of mail services Jerry Cope, who is on £140,000.
Peter Carr, chairman of industry watchdog Postwatch, had earlier said: “It is extremely difficult to justify such pay increases when the service is so poor and the company is losing £1.5 million a day.”
After Mr Roberts turned the rise down, Mr Carr said: “This is a sensible decision from an eminently sensible man. There could be no justification for a 10 per cent increase to bosses when workers are offered only two per cent.”
Nigel Waterstone, Tory spokesman on postal services, said: “It is bizarre to reward failure like this. It is insensitive and provocative for the Post Office workers while their pay negotiations are going on.”
Mr Roberts said the two men had decided not to take the pay increases “at this time”. He said: “The debate about pay within Consignia is legitimate, but our priority is the pay of postmen and women. The business is in a perilous state and the key issue for all of us is affordability. We will address all these issues when the company can afford it and not before.”
The company is locked in talks with unions trying to raise the average weekly wage from £250 to £300 by 2004. They are immediately seeking a five per cent pay rise.
Consignia, which as well as facing huge losses is poised to cull 30,000 jobs, offered a national wage increase of 2.8 per cent.
Evening Standard
From PA News, 4.3.02
The Department of Trade and Industry said it believed the two men were right to forego their pay rises.
A spokesman said that last October the DTI had agreed to recommendations made by the remuneration committee after ministers were told it would be unsustainable for Mr Roberts to be paid significantly less than less senior members of the board.
“We agree that the pay rises would only be made if a new chief executive of Post Office Counters was recruited at a higher level than the chief executive of Consignia in order to reduce, but not to eliminate, the pay gap and recognise new responsibilities.
“The new chief executive of Post Office Counters was announced in February and will start his post in April.
“In the light of the current situation at Consignia, we believe John Roberts and Jerry Cope are right to forego these pay rises.”
