Post Office Committed To Essential Business Transformation Plans

- Post Office disappointed that people in Admin and Supply Chain vote Yes to CWU ballot on strike action

- Yes vote represents a third of people working in Admin and Supply Chain 

- The ballot and any strike action will not include employees working in the Post Office’s over 11,500 branches across the UK

- Post Office undertaking biggest transformation in UK retail history to become commercially viable and reduce reliance on public money

- Post Office offering fair and affordable pay increases of more than five per cent

- Post Office is offering to bring in ACAS to help resolve the dispute

The Post Office said it is disappointed by the CWU’s announcement that people working in Post Office administrative roles and Supply Chain network have voted yes to strike action. The Post Office said that the Yes vote accounted for a third of people working across its Admin and Supply Chain teams.

It urged the CWU to choose talks over strikes, particularly as the offer includes a series of fair and affordable pay increases comprising more than five per cent over a proposed three year deal. For people working in the Post Office Supply Chain the proposal also includes the potential for lump sum payments comprising up to £1400 across the three year period.

The Post Office reassured customers that this ballot does not include any of the Post Office’s customer facing employees working across its 11,500 strong branch network.

The Post Office said it remains open to talks and that its offer of meeting with ACAS, which has so far not been accepted by the CWU, remained very much on the table.

It said that the CWU has publicly demanded a “no strings attached” pay increase for 2014/15. This would not help the business achieve its essential transformation plans. It stressed that any deal must be linked to delivering changes to make this part of the business more competitive for the future and reduce reliance on public money.

Keith Rann, Head of Supply Chain said: “We would like to reassure customers that this ballot does not involve people working in our branches. We have made a fair and affordable pay offer. After almost six months of talks with the CWU, including an offer by us to meet at ACAS which remains very much on the table, we remain committed to reaching an agreement which recognises our people for their hard work and allows us to make the changes we need to modernise and grow our business.

“We are undertaking the biggest modernisation programme in UK retail history to ensure we become commercially viable and reduce our reliance on public money. We urge the CWU to reconsider their unrealistic demands and discuss an affordable pay deal rather than call strike action which can only cost our people money.”

The Post Office’s pay offer follows the same, self-funding, principle as the deal agreed with the CWU earlier this year for people working across the Post Office’s Crown network.

Any pay agreement for 2014/15 will follow on from a deal, which delivered a compound consolidated pay increase to people working in Post Office Administrative roles and in its Supply Chain of over 10% over the previous three years.

The Post Office’s pay offer to the CWU is linked to their commitment to working with the Post Office to deliver cost savings. The Post Office proposals comprise of a three year pay deal, which includes:

• 2014/15 A 1.9% consolidated pay increase effective from 1^st April 2014, plus for people working in Post Office Supply Chain two lump sum payments, £500 to be paid in December 2014 and £200 payable in March 2015
• 2015/16, and 2016/17, an increase in basic pay in each of the two years of 1.6% per cent, plus for people working in Post Office Supply Chain lump sum payments of £500 payable in December 2015 and £200 payable in December 2016

Ends

Notes to editors:

The Post Office serves over 17 million customers a week and a third of small businesses. Some 99.7% of the total population live within three miles of a post office and over 93% live with one mile of a post office. For many rural communities, the post office is the only retail outlet. Post Offices branches remain highly valued and trusted, and are the focal point of many communities. For more information, visit www.postoffice.co.uk.