Royal Mail is to begin closing two of its three largest London mail sorting centres withimmediate effect, resulting in around 750 job losses, and their workload distributed among the
capital’s remaining five sorting centres.The postal union CWU claimed, however, that the move would inevitably lead to compulsoryredundancies.
The closures are part of a nationwide programme of changes in which around half of the company’s64 centres in the UK could close by 2016, in response to the structural changes in the postalmarket – characterised by declining letter volumes and increasing numbers of packages.
A spokeswoman told CEP-Research that the decline in mail volumes over the past few years meantthe London sorting centres already had excess capacity, allowing the remaining facilities to takeon the volumes of its east London centre in Bromley-by-Bow and the south London centre in Nine ElmsLane. The number of items posted in London is expected to halve by 2014, compared with 2006levels.
The UK postal operator said it expected the phased closure of these “to commence immediately”,although the two would not close until next year. Mail and parcel traffic, as well as some of thestaff from the south and east London mail centres, would be transferred to the company’s fiveremaining mail centres in the capital: Croydon, Greenford, Jubilee (Feltham), Romford and MountPleasant.
Royal Mail administrative and support staff based at Rathbone Place in west London are alsoexpected to be relocated to Mount Pleasant, which will receive around £32 million in newinvestment. The international mail processing work currently largely undertaken manually at MountPleasant will also transfer, on a phased basis, to the entirely automated Heathrow WorldwideDistribution Centre in Langley.
“Mount Pleasant is a large facility, which needs significant investment to handle the postalvolumes in London, including the change in the mix of items,” the company said. “Royal Mail expectsto invest £69 million in Greater London as part of the UK-wide modernisation programme; of this,£32 million will be invested in Mount Pleasant. The latest automation equipment will be installedthere; working conditions will be significantly improved.”
The company said it had engaged in more than nine months of consultation with the union CWU todiscuss the changes needed across Royal Mail. It said the Greater London rationalisation programmewas expected to reduce the number of people employed by Royal Mail in London by around 750, out ofthe company’s total workforce in London of 20,000, and to achieve annual savings of £30million.
“After much study and careful thought, Royal Mail believes it will not have to resort tocompulsory redundancies to manage the reduction in the number of employees,” it said. “With peopledemonstrating reasonable flexibility, Royal Mail expects that everyone who wants to remain in thebusiness will be able to do so. The company has in place a well-developed programme to help itspeople to adjust to these changes.”
However, the CWU union disputed Royal Mail’s analysis, warning that compulsory redundancies“look inevitable unless the company returns to talks”. A CWU spokesperson said: “We don’t believethat the closure of two major mail centres in London can be managed without compulsoryredundancies. We also believe that Royal Mail’s announcement is not in accordance with the existingnational agreements we have with the company.
“In 2010 Royal Mail accepted that the overarching objective of business transformation was toavoid compulsory redundancies. Given the number of staff in London, today’s announcement threatensthis commitment. We have tabled alternative proposals are insisting that Royal Mail returns totalks to resolve this issue.”
A Royal Mail spokeswoman said the conflicting views could revolve around the respectiveinterpretations of “reasonable flexibility”, which she said would require employees moving todifferent work bases and taking on different tasks. She said the first phase of the closure of thetwo London sorting centres would involve consultations with individual staff members about theirpreferences, allowing the company to identify which staff, as well as which mail volumes, could betransferred to the other London facilities.
She told CEP-Research that the company would continue to engage with union representatives, inorder to help manage the process, but she was optimistic that the positive consultations that ithad already held with union representatives, and the 2010 Business Transformation agreement withthe CWU, meant there would be no industrial action as a result of the changes.
The company said consultations with Unite/CMA will also begin shortly on reducing the number ofRoyal Mail operational line managers across the UK by up to 1,000 through voluntary means. Thisfollows a separate review of managers in head office departments which will result in 1,700 peopleleaving the group when this specific initiative concludes. The company has reduced the number ofemployees by around 65,000 since 2002.
Mark Higson, managing director of operations and modernisation, said: “Royal Mail’smodernisation programme, which is vital to ensuring a successful future for the letters and parcelsbusiness, depends on having the right number of people in our business as well as deploying theright technology and equipment.
“We are conscious of the impact today’s announcement will have on our staff in London. It ishard to reduce job numbers at any time; we are committed to doing everything we can, in line withour agreement with the union, to make these changes on a voluntary basis. We will be providingspecialist outplacement advice to help our people affected by this announcement to look for newopportunities outside Royal Mail.”
