Post Office draws up plans to privatise core services

The Post Office is preparing to privatise many of its services in a move that could lead to tens of thousands of job losses.

A document, marked "strictly confidential", sets out a strategic five-year plan and reveals that the organisation, now called Consignia, is preparing to "outsource" services across the company, reduce staff and slash costs.

Consignia launched the first round of redundancies last week when it announced that it was to cut 2,100 managerial and administrative jobs. But The Independent understands that its plans are far broader.

The document predicts that the proposals, which could include thousands of compulsory redundancies, will be resisted by unionised staff because of its "unprecedented level of change". The working practices of postmen and postwomen, the mechanics who fix the post vans, drivers and cleaners are all under threat from the plans to increase efficiency throughout Consignia's "core and support services."

Thousands of Post Office security guards and mechanics are expected to be next in the firing line. Negotiations are already under way to privatise the jobs of 3,000 cleaners.

"Reducing overhead costs throughout the organisation, will be a key corporate strategy in the first year, 2001-2002," the memo, seen by The Independent, says.

"In driving for improved efficiency, the Business will continue to try to avoid compulsory redundancy, providing it secures the co-operation of employees and trade unions. But this may not be possible everywhere, and given the ambition to outsource parts of both core and support services, this plan will increase the strain on an already difficult industrial relations climate."

There are about 200,000 employees in Consignia, many of whose working practices are strictly unionised. The company's plans could lead to an angry response from the Communications Workers Union. Strikes earlier this year resulted in a backlog of 15 million undelivered letters.

Billy Hayes, the union's general secretary, said the memo was very aggressive. "We want to sit down with them and engage with them on issues such as productivity," he said.

Tony Blair will put himself on a collision course with the trade unions today by setting out his vision of an increased role for the private sector in the health and education services. The Prime Minister will compare his vision for public services to that of Clement Attlee, who created the National Health Service in 1948.