Subpostmasters' pay slashed despite Post Office paying £10m

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MORE than 250 North Wales sub-post offices have suffered a fresh blow after Royal Mail revealed it was to slash millions of pounds off their owners’ income.

Last night, sub-postmasters accused bosses of “putting a gun to their heads” by forcing them to work for less money for the second year running in the aftermath of widespread closures.

They are facing the cuts despite Post Office Ltd raking in record profits of £62m last year and paying out £10m in bonuses.

The move could have a “disastrous effect” on North Wales’ remaining 257 sub-post office branches as owners already struggle to meet ever-increasing overheads.

Communities are still reeling from the loss of 52 of the region’s offices and could now suffer further by Royal Mail’s plans to slash £30m from the pay packets of 9,000 sub-postmasters across the UK.

In a letter to Royal Mail chairman Donald Brydon, George Thomson, leader of the National Federation of Sub-Postmasters, says his members, whose pay fell by £24m last financial year, are being treated like “second-class citizens”.

Workers at the 370 Crown post offices – nine of which are in North Wales – will not be hit by cuts because staff are paid by the hour, but the sub-postmasters will suffer another freeze in their fixed income and have their commission slashed by 66%, reducing their earnings in real terms by a further £6m this year.

For Peter Montgomery, who owns Ffrith Post Office in Prestatyn, it means his income will plummet by £4,000 year-on-year.

He said the cuts could kill off branches that are struggling and believes management is exploiting the fact most sub-postmasters are self-employed and are therefore in no position to strike.

Speaking to the Daily Post last night, Mr Montgomery, secretary of the North East Wales branch of the National Federation of Sub-Postmasters, said: “This is a bigger threat to post office survival than the government’s closure programme. Because of this, my earnings will take a real hit and I will be losing around £4,000 year-on-year. That’s not to mention the £2,000 hike in utility bills I am also bearing the brunt of.

“It is already apparent that thousands of sub-postmasters are facing difficulties keeping their heads above water in order to provide their communities with a service – this will just kill us.”

He added: “I know of people who have been in the business a long time, who are now handing their notice in because of severe financial difficulties, and in 12 months time, if nothing is done, I could be in the same boat. We are hardworking and honest and provide a vital community service – we deserve better than this.”

The NFSP asked for a 2% increase, matching that paid to a postman, but the Post Office would not agree and now pay talks have broken down.

Yesterday Post Office officials remained adamant that sub-postmasters are getting a fair deal.

A spokesman commented: “Overall sub-postmasters’ pay has increased every year for the last five years and in the financial year just ended, the average rise was 5% at a time when pay for all direct employees across Royal Mail Group was frozen – and under the pay arrangements for this current year, we expect many sub-postmasters to see their remuneration increase further despite the tough trading conditions faced by the entire company.”

Meanwhile, Alan Cook, who ran the Post Office until the end of last month is believed to have pocketed a £1m bonus. Royal Mail chief executive Adam Crozier, who took over ITV this week, is said to have left with £2m.