UK Post Office to axe 500 jobs, say unions

The UK Post Office is to axe 500 jobs in its cash handling business, the Communications Workers Union (CWU) said on Tuesday.

The operation – known as Supply Chain - provides collection, handling and distribution of cash across the Post Office network.

In a statement, the CWU said management heads should roll for failing to present a more stable business case and allowing central government to impose massive spending cuts.

Post Office CWU representatives and branch secretaries from across the UK will meet in central London next Monday to decide their response, the union said.

“The Supply Chain job cuts have come as a direct result of the Post Office announcing they’re voluntarily pulling out of external cash and valuables in transit – which is an almost unbelievably bad business decision,” the CWU said.

“Separated from Royal Mail by the 2011 Postal Services Act, the Post Office here in the UK is the only one in the world which has been separated from the national mail delivery service and the CWU maintains that this decision has greatly damaged the network’s viability.”

Tuesday's job loss announcement follows an expected further 500 sackings from the franchising of 39 Crown Post Offices.

CWU general secretary Dave Ward said managers should accept the business was “in crisis and heading for ruin".

"If they care about the future of the network they should resign in protest at the straightjacket government cuts have left them in," he added.

"The Post Office was split from Royal Mail in 2012 in the run-up to privatisation and we are yet to see a plan that will secure its future.

"With a cut in its funding from £210m in 2013, to zero in 2019, these job losses show that, under Business Secretary Sajid Javid's leadership, the Post Office is heading the same way as the steel industry."

Brian Scott of Unite, which has 79 members among the cash handlers being made redundant, said the losses would "tear the heart out of the Post Office" and "put it on the road to destruction".

"The Post Office's business plan, which was agreed with the Government, has failed.

"Those at the top should accept the blame for that, but instead they are adopting a slash and burn approach in an effort to cover this up.”

A Post Office spokesman did not confirm the numbers of workers to be fired.

"We are currently briefing the teams affected by proposed changes in our supply chain. These people should of course be the first to learn of our proposals, so we cannot comment further until these briefings are complete.”

Royal Mail was in public ownership for 499 years, but became a target for privatisation under the Labour government led by Tony Blair.

The Conservative-Liberal Democrat coalition government then pushed through the legislation that saw 60% sold to private investors, with 10% given to staff for free.

The government retained 30%, but faced severe criticism that it had undervalued the company by hundreds of millions of pounds when the shares soared by 87% at one point.

In 2015 the government offloaded the rest of its stake with 28% sold to investors and 2% given to employees.