January 2, 2002—Opposition from the Communications Workers Union may jeopardize UKs postal operator Consignia’s plans to achieve headcount and efficiency savings through contracting out support services.
Just last week, Consignia confirmed that it was considering a range of options for all support services, from contracting-out to joint ventures. Benefits to the company would include cost-sharing; renewed focus on core business; injection of outside expertise; and improved prospects for support staff.
Consignia has already created a joint venture with Granada for its catering operations and was expected to announce a JV partner for its facilities management arm Romec before Christmas. Other services, including employee health services, vehicle fleet, IT, training and HR were expected to follow.
The company now says that although it is still looking for partners, it will also continue to negotiate with the union on the arrangements. Consignia says both the Romec and vehicle services operations were always seen as longer term deals, taking up to 18 months to complete. A spokesperson said there was “nothing new” in this for bidders, who have been aware of Consignia’s less than harmonious industrial relations.
Plans for employee health services, training and HR, which involve smaller numbers of staff, are thought to be further advanced. An announcement on EHS may come early in the New Year.
Consignia has a 51% stake in the joint venture formed two years ago with Granada. Although staff maintained pay and conditions under a TUPE transfer, they were effectively removed from Consignia’s head count. However, the company cannot look to support services to deliver more than a fraction of the savings it needs to make. Out of a total headcount of around 200,000, some 160,000 are frontline Royal Mail staff.
The Communications Workers Union seems content that the whole issue has been kicked into touch. A spokesman told i-FM the union had assurances that decisions on both Romec and vehicle services had been deferred until March. He also confirmed the CWU’s opposition to contracting-out: “We don’t accept any of it on principle. It’s bringing the private sector into public services.”
However, the CWU has agreed contracting arrangements in the past and may well compromise again.
—Richard Byatt
Reprinted with permission; copyright 2002 i-FM
