Around 1,000 jobs could be at risk as the Post Office announces a five-year transformation plan.
The state-owned company has announced a “new deal” that it claims will add a quarter of a billion pounds annually to postmasters’ remuneration by 2030 by increasing their share of branch revenue.
Post Office chair Nigel Railton said postmasters could expect up to £120 million in additional remuneration by the end of the first year of the plan, with a view to doubling average annual branch remuneration by 2030.
The Post Office said its branch network of 11,500 branches would not be affected by the plan, but is reported to be looking into whether to close 115 wholly-owned branches that are not part of its franchise network, affecting around 1,000 jobs.
Railton said: “The Post Office has a 360-year history of public service and today we want to secure that service for the future by learning from past mistakes and moving forward for the benefit of all postmasters. We can, and will, restore pride in working for a business with a legacy of service, rather than one of scandal.
“The value postmasters deliver in their communities must be reflected in their pockets, and this Transformation Plan provides a route to adding more than £250 million annually to total postmaster remuneration by 2030, subject to government funding.
“It begins a new phase of partnership during which we will strengthen the postmaster voice in the day-to-day running and operations of the business, so they are represented from the frontline to the boardroom.”
Post Office news
However, the Communication Workers Union said the timing of the plan, while the public inquiry continues into the Horizon IT scandal, was “tone deaf” and “immoral”.
“We call on the Post Office to immediately halt these planned closures,” said Dave Ward, CWU general secretary. “CWU members are victims of the Horizon scandal – and for them to now fear for their jobs ahead of Christmas is yet another cruel attack.”
The Post Office said that the transformation plan will encompass a number of further changes including:
- Strengthening postmasters’ commercial offer to consumers to boost revenue
- Delivering a new, lower-risk branch IT system for postmasters
- Investment in automation of cash and mailing services so branches can be run more efficiently
- A “new operating model” for the business in which a “streamlined central organisation” offers support to postmasters.
Elliot Jacobs, a serving postmaster and non-executive member of the Post Office board, said the last few years had been “challenging” for retailers and postmasters.
“We have faced cost pressures from rising energy prices, increased national minimum wage and National Insurance contributions.
“It’s vital that the Post Office embarks on this major Transformation Plan so that we have a sustainable financial future, and one that benefits the thousands of postmasters who work tirelessly day-in, day-out to support the local people and businesses who rely on us for essential everyday services,” he said.
The Horizon scandal revealed that between 1999 and 2015, hundreds of subpostmasters were wrongly prosecuted after computer software falsely showed their accounts to fall short. The inquiry is now in its final week of evidence.
Isabella Mason, associate at Oury Clark law firm, said the Post Office would have to follow a fair procedure in terms of consulting with affected employees and looking at alternative employment options.
“Of course, there are sensitivities around any restructuring, even more so with a public investigation ongoing. Implementing structural changes during the investigation could be perceived as an attempt to deflect responsibility or obscure accountability,” she said.
“Additionally, restructuring during the investigation period could be viewed as prejudicial or as an attempt to influence the outcome of the inquiry.
“In any event, the legislation introduced by the government to quash the wrongful convictions and provide compensation to the affected sub-postmasters must be abided by and met without hinderance, ensuring that resources remain available for fair compensation.”
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