LTB POST OFFICE MUTUALISATION

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Letter to Branches


No: 507 Ref: 134 Date: 05 July 2012

TO: ALL BRANCHES WITH POSTAL MEMBERS


Dear Colleagues,

POST OFFICE MUTUALISATION

Branches should be aware that yesterday the Government published their response to the consultation “Building a Mutual Post Office”. In response, a CWU press release is attached, which conveys our sentiments on this matter.

The report states that the Government will retain a mechanism to ensure that it can intervene if required to protect the public benefit, upon a transfer of ownership to a mutual. This position is vital; additionally, the Government will retain ownership at least until commercial sustainability is reached.

We are also pleased that the report states the following two conclusions:

• “As enshrined in the Postal Services Act 2011, the purpose of the mutual must be to serve the public benefit. This must be codified in the constitution of the mutual”.

• “Post Office Ltd will establish a stakeholder forum to develop a definition of the public benefit purpose of the Post Office. Government will be represented within the forum as an interested party". The CWU will play an active role on this forum.

Stakeholder Forum

Much of the finer details of how the mutual will be created and managed are being left to the Stakeholder Forum to determine: the public purpose; membership; the role for consumers and how we define what financial sustainability looks like in the future. The CWU will be active participants in the forum in a constructive and positive way and we will be using this platform to emphasise our view that the need for Government support is vital for the long-term sustainability of the business.

However, we have voiced concerns about the Managing Director of the Post Office chairing the Stakeholder Forum; which brings into question its neutrality, and we are engaging with BIS with regards to our concerns.

We have also made it clear that we are in favour of a successful operating model for the Post Office and if mutualisation can do that then this could be a way forward. A crucial aspiration is that the workforce must be at the heart of a mutual organisation.

For information purposes, attached to this LTB are the following documents:

• The Government’s Response – Building a Mutual Post Office, including press release
• Consumer Focus Press Release
• National Federation of SubPostmasters Press Release

It should be noted that both Consumer Focus and National Federation of SubPostmasters are warmly embracing the drive to mutualise the Post Office. We have real and genuine concerns, it is, therefore, imperative that we are at the centre of the debate; representing and protecting our members’ best interests. In this regard, we anticipate the inaugural stakeholder forum being held in September.

As to next steps, we will be documenting the Postal Executive accordingly and further developments will be reported.

Any enquires should be addressed to Claire Bowers cbowers@cwu.org.

Yours sincerely


Andy Furey Dave Ward
Assistant Secretary Deputy General Secretary (P)

Attached Docs

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[Nige97]

A crucial aspiration is that the workforce must be at the heart of a mutual organisation.

So that's the 11000 plus sub postmasters and their assistants then :)