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Post Office workers to strike over plans to move 'crown' branches Post Office workers to strike over plans to move 'crown' branches
(2 months later)
Post Office workers have announced strike action for Wednesday as a dispute over plans to move 70 large high-street post offices into shops nears its fifth month.Post Office workers have announced strike action for Wednesday as a dispute over plans to move 70 large high-street post offices into shops nears its fifth month.
As many as 4,000 staff at the Post Office's "crown" branches – large high-street operations selling everything from stamps to financial services – could bring down the shutters at 12.30pm, in the eighth walkout since Easter.As many as 4,000 staff at the Post Office's "crown" branches – large high-street operations selling everything from stamps to financial services – could bring down the shutters at 12.30pm, in the eighth walkout since Easter.
"Post Office plans to close offices, cut jobs and reduce services cannot go on unchallenged," said Dave Ward, deputy general secretary of the Communication Workers Union, who will lead a march of Post Office staff on Westminster."Post Office plans to close offices, cut jobs and reduce services cannot go on unchallenged," said Dave Ward, deputy general secretary of the Communication Workers Union, who will lead a march of Post Office staff on Westminster.
The CWU says the plans will mean 1,500 job losses, though the Post Office insists there will be no compulsory redundancies among staff who work at the affected branches.The CWU says the plans will mean 1,500 job losses, though the Post Office insists there will be no compulsory redundancies among staff who work at the affected branches.
The Post Office – a publicly owned company distinct from the Royal Mail, which the government recently announced plans to privatise – said it was disappointed with the call to strike.The Post Office – a publicly owned company distinct from the Royal Mail, which the government recently announced plans to privatise – said it was disappointed with the call to strike.
The network of 370 crown branches lost £46m in 2011-12 according to the government. It wants them to break even by 2015.The network of 370 crown branches lost £46m in 2011-12 according to the government. It wants them to break even by 2015.
Kevin Gilliland, Post Office network and sales director, said the organisation had to continue with its turnaround plan "to ensure we keep these branches on high streets and in city centres across the UK.Kevin Gilliland, Post Office network and sales director, said the organisation had to continue with its turnaround plan "to ensure we keep these branches on high streets and in city centres across the UK.
"We remain open to discussions with the CWU on pay options which do not add to the current loss of public money.""We remain open to discussions with the CWU on pay options which do not add to the current loss of public money."
The union hit back, arguing that the Post Office could save money by reining in senior managers' pay, in the wake of revelations that Post Office managers earning £80,000 a year or more had shared a bonus pot worth £2m.The union hit back, arguing that the Post Office could save money by reining in senior managers' pay, in the wake of revelations that Post Office managers earning £80,000 a year or more had shared a bonus pot worth £2m.
"The company is in disarray and clearly out of touch with both its staff and customers. A positive solution can be reached to protect jobs and services if only the company, and perhaps government will put the effort in," Ward said."The company is in disarray and clearly out of touch with both its staff and customers. A positive solution can be reached to protect jobs and services if only the company, and perhaps government will put the effort in," Ward said.
A Post Office spokeswoman said bonus schemes for staff at all levels were linked to "transformational targets for turning this part of the business around".A Post Office spokeswoman said bonus schemes for staff at all levels were linked to "transformational targets for turning this part of the business around".
She added: "For the 70 branches which we are proposing to partner with retailers it costs us between around £1.50 to around £2.50 to generate each £1 of income. This is public money and this is clearly not a sustainable position."She added: "For the 70 branches which we are proposing to partner with retailers it costs us between around £1.50 to around £2.50 to generate each £1 of income. This is public money and this is clearly not a sustainable position."
In a ballot in March, 88% of Post Office staff voted in favour of strike action, which has led to seven walkouts since Easter.In a ballot in March, 88% of Post Office staff voted in favour of strike action, which has led to seven walkouts since Easter.
Smaller Post Office branches – 97% of the network – will not be affected by strike action, but the crown offices have become a highly charged battleground because they account for 20% of customers and 40% of financial service sales.Smaller Post Office branches – 97% of the network – will not be affected by strike action, but the crown offices have become a highly charged battleground because they account for 20% of customers and 40% of financial service sales.
Alan Johnson, a former postman and Labour home secretary, who will address the strikers at Westminster, said: "When I was general secretary of the CWU, the Post Office announced that they were closing 400 crown Post Offices. I warned them at the time that this would be the start of a long decline and that is exactly what has happened. If the Post Office does not retain its flagship crown Post Offices the whole service will be diminished."Alan Johnson, a former postman and Labour home secretary, who will address the strikers at Westminster, said: "When I was general secretary of the CWU, the Post Office announced that they were closing 400 crown Post Offices. I warned them at the time that this would be the start of a long decline and that is exactly what has happened. If the Post Office does not retain its flagship crown Post Offices the whole service will be diminished."
A Department for Business spokesperson said: "Eliminating the heavy losses from the 370 branches of the Crown post office network by March 2015 is a key element of the Post Office's strategy to make the network sustainable in the long term".A Department for Business spokesperson said: "Eliminating the heavy losses from the 370 branches of the Crown post office network by March 2015 is a key element of the Post Office's strategy to make the network sustainable in the long term".
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