POST OFFICE: CHAIRMAN’S STRATEGIC REVIEW – FUTURE OF THE POST OFFICE
Branches are advised that Nigel Railton, the Interim Chair of Post Office (formerly CEO at Camelot and appointed at Post Office on 1stMay by Kemi Badenoch) instigated a formal Strategic Review of Post Office, due to conclude by October. A Business & Trade Dept press release on Railton’s appointment stated he will “be invited to give Ministers his views on the future direction of the Post Office”. Furthermore, Badenoch stated he will “fix the issues of the past whilst transforming the company for the future”.
Our Post Office members are aware that there have been some well-informed press articles in this week’s national press that indicate significant numbers of job losses are being planned by Post Office as a result of the Chairman’s Strategic Review. These articles are obviously very troubling for our members who are now facing an uncertain future. As would be expected we have received enquires as to what the Union’s stance is on this matter.
We are clear that the immediate focus needs to be on reducing costs amongst the multiple layers of senior managers that have incrementally increased in recent years. In fact, there appears to have been an explosion of managerial jobs and it would be fair to say that empire building is rife. There is also concern that many “managers” do not even have line manager responsibilities. Obviously, Post Office’s bloated management structure is unsustainable, as indeed are the unnecessary and multiple tiers of management that slows down decision making, accountability and in all probability creates duplications by the operation of silo working.
Equally, the Union is adamant that there should be no attack on front line operational jobs that are customer facing or those necessary jobs that provide crucial support for Postmasters. This includes cash provisioning via Supply Chain which must remain an in-house operation. The Union would naturally oppose outsourcing of key jobs and roles and if necessary this would include industrial action.
The Chairman’s Strategic Review is evidently a challenge to the Union and our members, particularly as it focuses on cost reduction. However, it should be understood by all concerned that the grotesque mismanagement of Post Office in recent years, and in particular the approach taken to litigation surrounding the Horizon scandal, has led to the squandering of hundreds of millions of pounds in legal fees in a futile attempt to defend the indefensible. This included a robust defense of Horizon itself when Post Office sought to defeat the Group Litigation claim by the Justice for SubPostmasters Alliance.
Clearly Post Office is in a long-term crisis of its own making and this situation has been exacerbated by the inertia and the lack of innovation shown by the Board in recent years. Indeed, what is abundantly clear is that internal fighting amongst the leadership of Post Office and the obsession with Nick Read, former CEO, to receive more money via pay rises and enhanced bonuses has been the focus rather than trying to make the business a viable concern in the future.
Therefore, the Union is adamant that our members must not be associated victims of Horizon and their jobs mustn’t be viewed as collateral damage by the new Leadership of Post Office. Whilst there is a case for reforming Post Office and definitely growing products and services, we must do everything necessary to ensure that our members’ jobs are safeguarded for the future. It follows that our members may have to be prepared to fight for their jobs.
Finally, Post Office, at a very senior level has already confirmed it actively wants to engage with the Union and arrangements are being made to ensure we have regular dialogue over the coming weeks and months. During these discussions we will naturally be seeking to influence the outcomes arising from Strategic Review, with the dual aims of protecting our members’ jobs, whilst ensuring Post Office has a sustainable future. Post Office, for its part, has declared its determination to bring about a long-term commercial success for Postmasters and in doing so provide better renumeration which in turn will protect the social value for communities. The Union fully supports better pay for Postmasters which is absolutely vital to stop further closures. A Post Office communication from Neil Brocklehurst, Acting CEO regarding the Strategic Review is attached for information.
Further developments will be reported.
Yours sincerely
Andy Furey
Assistant Secretary
Attachment 1: 24LTB331 PO- Chairman’s Strategic Review – Future of the Post Office
Attachment 2: Attachment to 24LTB331
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