The Post Office’s (PO) 108 remaining centrally-owned branches are to be sold to franchisees, sparking a mixed reaction from retailers.

A PO statement announcing the move on 8 April said moving to a ‘fully franchised network’ was part of its plan to improve pay for PO branch owners. All 108 sites ‘will be franchised by the autumn’, subject to yet to be agreed additional Government funding.

PO chair Nigel Railton explained: “By franchising these branches, we are protecting access to our services for communities right across the UK and realising £40 million worth of savings that will enable us to uplift postmasters’ remuneration by up to 10%.”

Hinting at who it wants to take over the 108 branches, PO said they must have a ‘clear track record’ of running PO services of a similar retailing offer.

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The Communication Workers’ Union, which represent both PO retailers and PO employees, warned 1,000 jobs will be lost as a result of the switch. CWU general secretary Dave Ward called on the Government to halt PO’s plans stating: “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.”

However, rival PO retailer representative group Voice of the Postmaster took a difference stance, throwing its full support behind the end of centrally owned PO branches. A statement by the group read: “This significant move will help unlock much-needed funds to ensure that offices remain open and that postmasters are adequately remunerated.”

VOTP added that it hopes PO staff affected ‘are treated fairly and equitably by the PO and can continue their employment with the new franchisees.’

Better Retailing understands the terms of employment for many PO-owned branch employees are better than for many in franchised branches. Previous  instances where PO branches have been ‘privatised’ have resulted in strike action.

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