http://www.mirror.co.uk/news/uk-news/go ... ce-7998675
Union chiefs warned the Post Office was “heading for ruin” after another 600 job cuts were announced
The news that the Post Office is cutting 600 jobs is yet more evidence that it is at crisis point.
The latest cuts come on top of announcements this year for the loss of 500 jobs from the closure of some of its flagship high-street branches, the loss of fifty financial service staff from across the network and plans to shut down its pension scheme.
So while the government said that ‘the Post Office business plan has not failed’, staff have been left wondering just what yardstick they’re judging success by.
The truth is that the government separated the Post Office from Royal Mail before privatisation without any plan for its future at all.
In 2010 when the CWU and other groups were raising concerns over how it would survive cut off from Royal Mail , we were told that the Post Office was to become a ‘front office for government’ and grow its revenues from financial services.
Yet without any strategy for actually achieving this, the Post Office’s own figures show it has failed on both counts.
Behind closed doors the Post Office itself describes the idea of it being a front office for government as “dead”.
Read more: Post Office cuts 600 more jobs as unions demand action to save service from 'ruin'
Now it has been left in a straitjacket of funding cuts. In 2013 it received £210m from theg overnment.
This year it will receive £80m. And from 2018 this is due to be zero.
The job losses we are seeing this year are the direct result of these cuts and the government’s failure to ensure the Post Office had a credible plan for making up the shortfall.
The Post Office’s response to this has been to cut costs and services.
Its flagship high-street branches should be driving new income – instead it is closing forty two of these this year on top of the fifty it shut in 2015.
Its Supply Chain operation should be targeting new business – instead the Post Office is abandoning this market altogether.
It is time for the Post Office board to be honest.
If they care about the Post Office they should resign in protest at the impossible task they now face.
They cannot continue to wield the axe for the government and pretend everything is fine.
And the government now has to intervene.
Under Sajid Javid ’s leadership the Post Office is going the same way as the steel industry - it cannot stand back and do nothing while thousands of jobs are lost.
In short, it has to show us that we have a government department with responsibility for businesses in order to support them: not to get out of the way as they go under.
We are not blind to the need for change – we are calling for the government to sit down with us and halt the cuts while serious discussions about the future of this great British institution take place.
This is the least our members and the public deserve.