A video, allegedly created by a subpostmaster accusing the Post Office (PO) of imposing “unfair” terms on its subpostmasters, has gone viral.
The video claims 84% of PO branches are operated by subpostmasters, with 1% of branches being managed directly by PO Limited.
It also states that in order to earn minimum wage, a subpostmaster must sell at least 7,000 stamps a week.
The video has been shared and circulated on social media by multiple subpostmasters, as well as some displaying it on their digital screens at the front of their shop. Burnley retailer Sophie Towers told Better Retailing she is at the end of her tether.
“I’ve said so many times I’m going to give up the PO side of my business,” she said. “I’m paid so little for what I do, I’m operating at a loss – it’s all so unfair. This is only going to get worse next year.”
In an interview with Better Retailing at the beginning of the year, chief executive Nick Read admitted there would be “winners and losers” from the PO and Royal Mail’s new Mails Distribution Agreement (MDA2). The new terms increased pay for POs selling a strong mix of high value mail products, but decreased pay for those selling a strong mix of lower value mail products.
EXCLUSIVE: Post Office to open first Drop & Collect branch
However, at the time Read pledged to support those negatively affected, with the promise the PO would “make up the difference” of any fall in remuneration due to new terms until April 2022.
Towers added: “I receive no communication from PO. I’d like someone to actually come in and see how difficult the service can be to manage.”
Another subpostmaster, who wished to remain anonymous said the firm “will never change”. “There needs to be improvements top to bottom,” they said. “I’ll be reassessing whether I say with PO next year when the latest remuneration comes into play.”
A PO spokesperson said: “Post Offices generate footfall for many retail businesses and complement their wider proposition. In the past six weeks we’ve held face-to-face events with 1,500 Postmasters to discuss new opportunities to increase sales, and how we can work together to enhance their overall profitability, including the new agreement with Royal Mail, roll out of click and collect services, and cash and banking.
Post Office launches parcel loyalty scheme
“Covid-19 has placed huge pressures on retailers. We guaranteed remuneration during the height of the pandemic and set up a Hardship fund. More recently we set up a Travel Support Fund for eligible Postmasters.
“Our dedicated team of Area Managers provide support to Postmasters. Furthermore, we continue to evolve how we listen to Postmasters and find new ways to drive footfall into their branches. For our partners who operate multiple branches, we have recently introduced monthly meetings where they can hear direct from senior leaders across our business and we have had positive feedback about this increased level of engagement.”
Better Retailing understands last year during the pandemic, PO announced that all branches operated by independent postmasters would receive 100% of their remuneration in April and 90% in May. The guarantee covered both their fixed and variable remuneration. Branches also benefited from a 15% top-up of their variable remuneration in June.
Post Office reaches £2.9 billion cash deposits and withdrawals
PO also set up a Travel Support Scheme for branches impacted by the continuing travel uncertainty as a result of Covid-19. Branches which are eligible will automatically receive top-up payments to the remuneration they would normally make for sales of PO Travel Money and travel insurance products between July and October this year.
In addition, this year PO ran a ‘Week in the Life’ cultural training for all staff. This was so that staff could see what it was like for a postmaster to operate a branch (often) seven days a week.
In October, PO ran a series of Local Engagement Events for postmasters and members of the senior leadership group, who met with 1,500 postmasters across the country.
PO is also in the process of establishing regional forums that will be representative of postmasters and will discuss common operational issues and ways to improve their overall experience.
One of the creators of the video speaks out
Sean Hudson of West Boldon Post Office and Village Store in County Durham created the video in collaboration with other retailers. He told Better Retailing: “I want everyone to realise how much you have to take from small commissions to get the minimum wage and how unrealistic that is.”
A freedom of information request response by PO in late October revealed nearly half of PO retailers received less than the minimum wage last year, based on opening for 10 hours per day, six days a week.
In the 2019-20 tax year, 4,950 branches took home less than £23,000 – approximately £7.37 per hour.
One in five stores were paid less than £10,000, around £3.21 per hour.
Commenting on the protest video, a PO spokesperson said: “Post offices generate footfall for many retail businesses and complement their wider proposition.
Tesco to offer new parcel delivery and collection service
“In the past six weeks, we’ve held face-to-face events with 1,500 postmasters to discuss new opportunities to increase sales, and how we can work together to enhance their overall profitability, including the new agreement with Royal Mail, roll out of click and collect services, and cash and banking.
“Covid-19 has placed huge pressures on retailers. We guaranteed remuneration during the height of the pandemic and set up a hardship fund. More recently we set up a Travel Support Fund for eligible Postmasters. Our dedicated team of area managers provide support to postmasters.
“We continue to evolve how we listen to postmasters and find new ways to drive footfall into their branches.
“For our partners who operate multiple branches, we have recently introduced monthly meetings where they can hear direct from senior leaders across our business and we have had positive feedback about this increased level of engagement.”
Read more Post Office news
Comments
This article doesn't have any comments yet, be the first!