Across the United Kingdom, the Post Office has unveiled alarming plans to close 115 of its branches, impacting around 1,000 employees as the organization wrestles with financial challenges and seeks transformation. Post Office chairman Nigel Railton announced this drastic overhaul, citing the necessity for change amid the backdrop of the damaging Horizon IT scandal, which continues to affect the reputational standing of the postal service.
With approximately 11,500 branches currently operating, the Post Office’s proposal predominantly targets its wholly-owned facilities, referred to as Crown Post Offices. These establishments are traditionally situated in high-traffic areas and are staffed directly by Post Office employees. The closure of up to 115 branches could lead to job losses not only among front-line workers but also at the head office, where hundreds of additional positions may be on the chopping block.
Railton, appointed earlier this year, emphasized the urgency and necessity of the closure strategy, expressing the need to secure the Post Office’s future. The proposed shake-up is part of a broader initiative aimed at enhancing the situation of postmasters, who have faced challenges related to diminishing revenues. Railton stated, "The Post Office has a 360-year history of public service, and today we want to secure service for the future by learning from past mistakes." He reassured postmasters of the plan to raise their revenue and give them more influence within the business.
The Communication Workers Union (CWU), representing employees affected by the potential closures, voiced strong opposition to the plans. General Secretary Dave Ward labeled the move as "immoral" and "tone deaf," particularly in light of the existing inquiry related to the Horizon scandal. This scandal saw over 700 sub-postmasters prosecuted for theft and false accounting between 1999 and 2015, due to issues with the faulty Horizon IT system, which inaccurately reported accounting shortfalls.
According to reports, the declining numbers of active postal transactions and growing competition from rival parcel operators like Evri have eroded profits for many branches. Consequently, increasing automation and operational efficiencies have become pivotal. The Post Office aims to allocate £120 million to raise postmasters’ earnings within the next year and hopes to develop new systems to reduce manual operations.
A spokesperson from the Department for Business and Trade commented on the significance of the Post Office within local communities, emphasizing the government's engagement with the revitalization plans. They recognize the integral role these branches play and seek to bolster postmasters’ positions within the organizational framework.
While some branches may entirely close, others could potentially be franchised to retail partners, including WHSmith, Tesco, and Co-op, allowing the overall service to remain available but under different management. This management shift would mark another chapter for the Post Office, wherein the franchises already account for around 2,000 of its operations, with 9,000 branches also typically run by independent operators.
Ward remains insistent on calling off the closure plans, urging the government to safeguard jobs and services as the organization grapples with its troubled past. "For them to now fear for their jobs ahead of Christmas is yet another cruel attack," he said, echoing sentiments shared by many employees who feel the weight of uncertainty as the holiday season approaches.
The inquiry surrounding the Horizon scandal is nearing its end, providing some hope for justice for those wronged during this tumultuous period. Government officials, including Post Office minister Gareth Thomas, have recognized the urgency and importance of addressing the issues surrounding the scandal to regain public trust.
Specific Post Office branches slated for potential closure include locations across major cities such as Edinburgh, London, and Manchester, with detailed lists already circulating. The closures will largely affect Crown Post Offices, which have drastically shrunk from nearly 400 ten years ago to 115 currently, highlighting the swift changes experienced within this storied institution.
Railton’s push for transformation positions him as the leader seeking to navigate the complex environment of today's postal services, where internet commerce and digital communication radically shift the way customers interact with postal entities. His statement reflects the challenges of restoring the Post Office's legacy, moving beyond the scars of the Horizon affair: "We can, and will, restore pride in working for a business with a legacy of service, rather than one of scandal."
Postmaster advocates hope the transformation plan translates to real progress, shifting not only the structure of operational management but also ensuring postmasters' revenue reflects the services provided to their communities. Citizens are left contemplating the future of neighborhoods once equipped with reliable postal services, as the Post Office announces these sweeping changes.”
