Consignia says redundancy proposal is fair but has yet to get union response

Consignia said the redundancy package it is offering the thousands of employees it will lay off over the next three years is “fair” although it has yet to get an official reply from the postal union.

“We’re committed to consulting with the union on the way we handle surplus staff. We’ve put forward a fair package and we look forward to the union’s response,” a Consignia spokeswoman said.

She said redeployment to other jobs available across the former Post Office is the “first option” given to the affected staff.

Officials from the Communication Workers Union were not immediately available for comment.

The Financial Times reported that Consignia and the union have struck a deal over job losses which avoids compulsory sackings and makes a damaging nationwide strike much less likely.

An agreement negotiated in the past few days provides guarantees that 30,000 redundancies over the next three years will be voluntary, according to the newspaper.

The agreement, the newspaper said, 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 400 mln stg in redundancy and relocation expenses.

The CWU last month has put its 145,000 members who work in Royal Mail on standby for possible industrial action should talks with management fail.