Has the Post Office ‘failed’?

The Post Office’s decision to close its final salary pension scheme is the latest episode causing concern over its financial state.

 

It will mean reduced retirement incomes for the scheme’s 3,500 members, despite the scheme having a surplus of about £100m.

 

Unite has told the new business secretary, Greg Clark, that it considers the Post Office a ‘failed’ business, being starved of funds by its ultimate owner – the government.

 

As Unite prepares for an industrial ballot (including strike action) of its 860 managerial members because of continuing redundancies, the franchising of a further 20 crown offices and the pension scheme closure, it is calling on Greg Clark to conduct a financial probe into why the Post Office is in such a poor financial state.

 

“The rationale given for these decisions is lack of funding available from the government which, in reality, is also based on the failure of the Post Office to deliver a positive and effective business plan,” said Brain Scott, Unite officer for the Post Office.

 

“It is our view that the Post Office has failed,” he added.

 

The ballot is expected to start in the middle of August. There are 3,500 staff affected by the proposed pension scheme closure.

 

“We are also seeking commitment from government to examine how the public funding that has been provided has been used and to examine the value for money it has provided, “ said Brian.

 

The Post Office has indicated that the total number of redundancies this year could reach 1,700, or which 1,100 are pension scheme members.

 

“Despite Unite and its members, working extremely hard to get the business to break even, we are now told that the business is out of funds and is, therefore, unable to meet its commitments to its employees,” said Brian.