Industrial action halts Royal Mail sell-off
The Royal Mail today abandoned plans to contract-out its cash distribution services after the threat of industrial action from workers.
The Communications Workers Union (CWU) said the turnaround was a “victory for common sense” but in a joint statement with the Post Office warned the department would need a major reorganisation.
Securicor had been in talks with the Royal Mail to run the Post Office’s Cash Handling and Distribution (CHD) division over 10 years but the bid was withdrawn earlier this month and further negotiations to save the deal failed.
Billy Hayes, the CWU’s general secretary, said: “Our members spoke with one voice against Royal Mail’s sell-off plans.
“As a consequence, Securicor and Royal Mail have abandoned their ill-advised attempts to privatise the Post Office’s cash handling division.
“This is a victory for common sense and will come as a major relief to our 3,000 cash handling members, who made it quite clear that they wished to remain as public servants within the Post Office.”
An overwhelming majority of the union’s CHD members voted in favour of industrial action earlier this month.
The Royal Mail has already announced that 3,000 urban post office branches will close over three years from the beginning of 2003.
And the Government is to introduce a scheme to pay benefits straight into people’s accounts. Both developments will see less cash being transported between post offices.
A Royal Mail spokeswoman said the contract was originally put out to tender “Because that part of the business has been losing money. The cost of running it has become more and more expensive while our need for cash is going down and down.”
Speaking about today’s decision to drop the plans she added: “It wasn’t going to go through smoothly. It was referred to the Competition Commission and it was not going to come back with a decision till February 21 and the union wasn’t happy with the deal so we’re looking to go with an in-house option.”
A Securicor spokesman said the company was disappointed with the decision but was now in a position to bid for other contracts.
