Ministers have deliberately delayed the implementation of thousands of redundancies at the Post Office, fearing a backlash over the Government’s handling of the organisation’s restructuring.
It is also thought that the Government has been trying to reduce some of the impact of the massive restructuring after Allan Leighton, the acting chairman, outlined the need for far tougher cuts than the 30,000 job cuts that have already been tipped.
THE Post Office -Consignia -is not privatised but the Government erected an elaborate structure to indicate that it had a degree of independence. The Government was to be seen as shareholder but the management of the organisation was to get on with running it.
That was the basis on which Allan Leighton agreed to take on the temporary chairmanship of Consignia. If he was to try to tackle the deep-rooted problems that are now costing the country a mind-blowing Pounds 1.5 million a day, then he would be looking to the Government for support but not for interference. Any deviation from that agreement would ensure that his stay in the chairman’s role would indeed be temporary, rather than converting into the permanent job that Tony Blair envisaged for him.
Read MoreThe Royal Mail and the Communication Workers Union said Friday they had tentatively agreed on a pay deal for 160,000 postal workers.
The union had threatened to strike this month if a deal had not been reached.
Royal Mail, a subsidiary of Consignia PLC, said the agreement would raise basic pay by 6.9 percent by April 2003, including a 2.1 percent hike backdated to Oct. 1.
The delivery monopoly held by Deutsche Post AG, the German postal operator, looks set to be reduced as of next year. It has been announced that the market is to be opened up to competitors.
Read MoreProfit decreased, growth business areas progressed
Net turnover at nearly the same level as for the previous year
Operating profit decreased to EUR 32.0 (92.0) million (65%)
Growth business areas performed well
The Post’s traditional core business remained stable
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