Isle of Man Post Office to outsource island’s remaining crown post offices
The Isle of Man Post Office is converting the island’s two remaining crown post offices into sub-post offices that will be operated by a retail partner. The company said it had the approval from the island’s Council of Ministers for the move, which will happen early in 2015.
Mannin Retail Ltd, which already operates five sub-post offices on the Isle of Man, is in line to operate the new sub post offices at Ramsey and Douglas.
The Isle of Man Post Office said it believed outsourcing its last two post offices would achieve “substantial” cost savings while maintaining service levels.
The company said its decision comes against a backdrop of declining mail volumes and retail transactions, which hit profitability last year.
It said the post offices on Parliament Street, Ramsay and on Regent Street, Douglas, had accounted for more than two thirds of the £750,000 loss made by the company as a whole last year.
Talks have begun with employees at the affected post offices regarding the changes, but the Isle of Man Post Office said Mannin Retail had offered all staff a position in the new sub post offices, which will be housed in the company’s existing retail shops in Douglas and Ramsey.
Graham Cregeen, Chairman of Isle of Man Post Office said: “Converting the two branches to Sub Post Offices will deliver substantial operational savings which we believe will reduce our losses by enough to protect the retail network into the future whilst ensuring a continued high quality service is provided to our customers.”
“Stunningly short-sighted”
The Communication Workers Union branded the decision to convert the post offices into sub-post offices as “stunningly short-sighted”.
The union called for a public consultation on the move, and said it was driven by the Isle of Man government’s requirement for the Post Office to hand over £2m a year “regardless of the performance of the IOM Post Office and its profit margins”.
Terry Pullinger, the CWU national officer, said it smacked of a “very short-term commercial decision”.
“We believe the closure of Douglas and Ramsey crown post offices is a stunningly short-sighted business decision,” said Pullinger.
“There has been no appropriate consultation either with the workforce, the recognised trade union or local residents. A public consultation must take place so those who rely on the post offices can have their say.”
