Sub-postmasters in 75k payout amid shake-up

[TrueBlueTerrier]

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More than 1,000 sub-postmasters have quit as the Post Office pushes ahead with an extensive reorganisation programme to make the business more competitive without state aid

More than 1,000 sub-postmasters have quit with compensation averaging £75,000 a head as the Post Office pushes ahead with an extensive reorganisation programme to make the business more competitive without state aid.

The National Federation of Sub-Postmasters (NFSP) told the Telegraph that thousands more are planning to follow in a shake-up that will accelerate the rapid change under way.

An image makeover and for many a new home are part of what is described as the biggest transformation in the history of the few remaining state-owned businesses.

Waitrose, Tesco , McColl’s, the Co-op and WH Smith are among supermarket groups and high street chains now providing room for local sub-post offices and offering longer opening hours.

Around 1,500 out of the 11,500 postal outlets are now run by such third party retailers, but the Post Office says the bulk of the franchises remain in the hands of sub-postmasters, attempting to develop retail businesses to generate new sources of income.

However, many are now finding the business pressures, growing competition and the fallout from the privatisation of Royal Mail too much to handle and want to leave.

The Post Office is offering them the equivalent of income from 26 of their last 36 months of trading, averaging £75,000, but only on condition there is a replacement or alternative post office. The severance payment is government funded.

Paula Vennells, chief executive

Paula Vennells, chief executive, is anxious to complete the overhaul before the 2018 deadline set by the last government for ending subsidies.

Funding over the past two years has been cut from £210m to £160m and the business is still in the red. More than 4,000 branches have been modernised and the Post Office insists there is no plan to reduce the size of the network.

Ms Vennells hopes to build on the rundown in high street banks to extend the range of financial services, and has opened a website to attract new investors.

The NFSP, which has seen membership drop by 2,500 to 6,000, is supporting the reorganisation and is urging sub-postmasters to move into retailing to increase income.

It has told Ms Vennells that without new products the Post Office will be unable to operate as an independent business and the UK will be left “with a hefty bill for the smartest, emptiest post office network in Europe”.

The NFSP is calling a conference to discuss its future following the loss of its trade union status last year and asking members whether they want to join the Communication Workers’ Union or retail trade bodies.

[NWpostie]

After the Horizon fiasco, they would be wise to jump while they are ahead with 75K and their financial reputation intact.