Consignia's woes mount ahead of loss announcement
Postal group Consignia was facing the threat of a national strike over jobs as it prepared to unveil record losses of over #1 billion, it was revealed tonight.
The Communication Workers Union (CWU) could ballot over 200,000 postal workers for industrial action in protest at plans to outsource support services, including cleaners’ jobs.
The move would heap more problems onto Consignia, which is tomorrow expected to report losses of up to #1.2 billion and confirm thousands of job cuts.
The company is also set to axe its controversial name and restyle the group as the Royal Mail.
Since becoming Consignia over a year ago opposition to the name has grown and the CWU recently launched a drive to call the service simply the Post Office.
Chairman Allan Leighton said shortly after being appointed earlier this year that he would prefer the name to be changed.
The latest round of job cuts could total 17,000 and will hit the Royal Mail, which is testing new delivery patterns in a bid to improve services and make savings.
The Royal Mail cuts will be on top of thousands of other job losses already announced at the parcels and other operations.
There has been speculation that chief executive John Roberts will tomorrow announce that he is stepping down from his post.
Mr Roberts joined the Post Office in 1967 and has been chief executive since 1995.
Government funding for Consignia’s restructuring is expected to be agreed tomorrow.
The postal group is losing around #1.5 million a day and faces increased competition from rival firms after the industry’s regulator decided to open up the market.
The CWU dispute involves plans to outsource Consignia’s facilities services business Romec, which is responsible for maintenance of the company’s 3,000 buildings.
The plan would save Consignia #60 million a year, but the union fears it could be the start of privatising parts of the service.
Union sources said Consignia had been warned that if the plan goes ahead, an industrial action ballot will be held among 200,000 workers.
