Union anger over Post Office contact

Unions yesterday attacked an expected ten-year contract to a private firm worth up to pounds 1 billion to deliver cash and stamps to post offices as ‘industrial vandalism’. Security giant Securicor has been selected by Consignia as its preferred supplier of cash management and transportation services throughout the UK.

Consignia employs 3,000 workers and has 700 vehicles in its cash-handling operations but has been looking to out-source services as part of its drive to cut costs. A number of staff will be transferred to Securicor if the deal goes ahead, and Consignia said their pay and conditions would be protected and there would be no redundancies.

But the Communication Workers Union called on the Government to intervene to halt the ‘blatant privatisation’.

Assistant secretary Andy Furey said the workers affected by the move were public servants.

‘If they wanted to work for a private company that could have chosen to do that, but they haven’t. It’s disgraceful that Consignia is playing musical chairs with their jobs. When the music stops who knows where they’ll end up.’

Securicor said that once the contract was finalised, it would process pounds 37 billion in notes and over pounds 2 billion in coins and will carry out 1.6 million cash transportation services every year.

The deal is subject to detailed negotiations, which will involve union representatives.

Securicor also updated the City on current trading ahead of its results for the year to September 30, due out in December.

It said operating results would be slightly above market forecasts, with the group as a whole and the core security business both performing well.

Its distribution business enjoyed an ‘improved’ second half and results for the year were likely to be ahead of last year. Losses at the Securicor Information Systems division are likely to be similar to the previous year.

Shares closed up 10p at 103p.