The Post Office confirmed it will go ahead with the plans first announced in November, to help boost the pay of its postmasters.
The business will continue operating the smaller 11,500 branches in the UK, which is the minimum number of locations required to be open. Staff will be offered a redundancy package or offered a position in a new location should a company swoop in to take control of the 108 branches.
Reports suggest Tesco and Ryman could take control of the 108 larger branches, usually found on UK high streets.
Nigel Railton, Post Office chair, insisted the branches will either remain in their current location or be relocated nearby as part of its five-year ‘Transformation Plan’. The sale of the branches aims to raise £250m per year for the salaries of postmasters, the Post Office announced.
Railton said: “By franchising these branches, we are protecting access to our services for communities right across the UK and realising £40m worth of savings that will enable us to uplift postmasters’ remuneration by up to 10%.
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“Over the coming months, we will continue to work with our unions to ensure that we treat our staff working in these 108 branches with care and respect through this transition, consulting with them on proposed changes.”
The move to franchise the branches has been slammed by the CWU, and the trade union urged the Government to intervene.
‘Nothing learned from Horizon scandal’
Dave Ward, the general secretary of the CWU, said: “The Horizon Scandal and the damage it did to thousands of individuals and the reputation of the Post Office should have been a wake-up moment for the whole company.
“It should have delivered a complete shift in approach, ethos and engagement with frontline workers.”
Ward also believes the decision shows the Post Office “has learned absolutely nothing from the scandal”.
Ward added: “The Post Office’s claim that these community services will be maintained by their failed franchising model is laughable to anyone who has seen their local Post Office services reduced to the back of a shop. The sell-off of WHSmith last week shows just how fragile and ill-thought-out this model is. This is the full privatisation of the Post Office via the back door.
“The role of the Government must also be examined. This is a continuation of the hands-off role played by the Tories. We call on Labour to immediately intervene and examine alternative options. Now more than ever, we need to seriously look at creating a joint venture between Royal Mail and the Post Office – two businesses that should never have been separated.
“This is a major test for this Government ahead of introduction of the Employment Rights Bill. It is inevitable that the news today will lead to further scrutiny of our relationship with the Labour Party. Our members and branches will see this as a crucial moment ahead that will truly test the link between Labour and the trade unions who created the party.”
