Consignia and union agree on job losses

Consignia and the postal workers’ union have struck a deal over job losses at the former Post Office which avoids compulsory sackings and makes a damaging nationwide strike much less likely.

Officials at the Communication Workers Union have claimed an agreement negotiated in the past few days provides guarantees that 30,000 redundancies over the next three years will be voluntary.

The agreement, hailed by one CWU official as a “breakthrough”, is understood to promise Consignia employees alternative jobs across the former Post Office and to protect pay levels for those that move.

The union’s postal executive is expected to decide today whether to back the agreement, which is likely to cost Consignia £400m ($574m)in redundancy and relocation expenses. If the package is accepted, the threat of nationwide industrial action by 150,000 postal workers will recede.

But problems remain over pay and the two sides are to go to mediation to settle disagreement over a recent settlement.

Mounting losses and the threat of new competition have forced managers into the most radical overhaul of the Post Office in its 500-year history, but opponents feared the job losses could have triggered a devastating series of strikes. Tony Blair is desperate to avoid a clash with postal workers as he faces threats of industrial action from teachers and council workers, in a war of words with the unions.

Consignia declined to comment on whether a document outlining an agreement on voluntary redundancies existed. But it said it had given the unions proposals on tackling job surpluses.

“We are committed to consulting with the unions about surplus staff,” he said.

Details of Consignia’s next restructuring phase are being discussed. The company is at odds with the union over changes to delivery times that could save it up to £400m. The dispute affects the pay settlement.

Officials, though, hope that the jobs deal will be backed.

“The whole thing is based on people being offered reasonable alternative jobs. We’re confident that, if the package is accepted, our members will support it,” said one.