CWU says Post Office mutualisation a 'distraction'

18 May 2011

Responding to a government-commissioned report on mutualisation for the Post Office published today (Wednesday), the Communication Workers Union warns that the problems facing the Post Office will not be solved by this “distraction”.

Billy Hayes, CWU general secretary, said: “Mutualisation is a distraction which will not solve the real problems facing the Post Office.

“Breaking the Post Office away from Royal Mail and privatising the mail service – which is what the government is doing through the Postal Services Bill - will do huge damage to the post office network's revenue. Mutualisation won't solve that problem. We believe government investment and commitment to providing government services through post offices is needed to keep post offices open.

“There is no evidence that distancing the Post Office from government by mutualising it will help; if anything it will make it harder for the Post Office to win government business to keep branches open. It is also a step away from setting up a state-owned Post Bank, which the Lib Dems promised in their manifesto.

“The post office network is currently loss-making and we can't see the staff being interested in taking on national debt through a mutualisation programme. Government backing and investment will give the network its best chance of survival.”

CWU is concerned that post offices face closure because of effects in the PSB which will put mails business at risk when Royal Mail is broken away from the Post Office. In a poll of sub postmasters at the end of April, 92 per cent thought their post office was either very unlikely or unlikely to survive without mails business provided by Royal Mail. Less than 1 per cent said they would be very likely to survive.

CWU is also concerned about the network being downgraded. As part of the funding earmarked for the Post Office, the Government is requiring Post Office Ltd to shut down 2,000 post offices by 2015 and replace these with 'Post Office Locals' - outlets offering a downgraded service from the counter of an existing shop/petrol station etc

The report, Mutual Options for Post Office Ltd, was released by the Department for Business, Innovation and Skills today and is available at: http://www.uk.coop/postoffice

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