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| Sub-postmasters union condemns £15.4m bonus pot for Post Office bosses | Sub-postmasters union condemns £15.4m bonus pot for Post Office bosses |
| (3 months later) | |
| Senior Post Office bosses were awarded more than £2m in bonuses last year at the same time as ending a £2.2m incentive scheme for sub-postmasters which led to the latter taking industrial action for the first time. | Senior Post Office bosses were awarded more than £2m in bonuses last year at the same time as ending a £2.2m incentive scheme for sub-postmasters which led to the latter taking industrial action for the first time. |
| Sub-postmasters had been receiving a 1p-a-letter payment for separating first and second class post since November. The Post Office decided to scrap the scheme after just five months, but the sub-postmasters were still expected to separate the post. | Sub-postmasters had been receiving a 1p-a-letter payment for separating first and second class post since November. The Post Office decided to scrap the scheme after just five months, but the sub-postmasters were still expected to separate the post. |
| Their union, the National Federation of Sub-Postmasters (NFSP), said the move led to staff refusing to separate the mail until the payment was reinstated. | Their union, the National Federation of Sub-Postmasters (NFSP), said the move led to staff refusing to separate the mail until the payment was reinstated. |
| Last year's Post Office bonus pot stood at £15.4m, the first time the payments have been revealed since it was split from Royal Mail, which is to be privatised. | Last year's Post Office bonus pot stood at £15.4m, the first time the payments have been revealed since it was split from Royal Mail, which is to be privatised. |
| A freedom of information request revealed Post Office managers earning £80,000 a year or more shared a bonus pot of just over £2.2m. Those earning between £30,000 and £80,000 shared £7.2m while those on less than £30,000 shared £6.2m. Sub-postmasters are not staff members but agents, and are not entitled to bonus payouts. | A freedom of information request revealed Post Office managers earning £80,000 a year or more shared a bonus pot of just over £2.2m. Those earning between £30,000 and £80,000 shared £7.2m while those on less than £30,000 shared £6.2m. Sub-postmasters are not staff members but agents, and are not entitled to bonus payouts. |
| George Thomson, the general secretary of the NFSP, called the bonus payments "morally reprehensible" and said it showed that the Post Office management were putting their own bonuses ahead of fair pay for sub-postmasters. | George Thomson, the general secretary of the NFSP, called the bonus payments "morally reprehensible" and said it showed that the Post Office management were putting their own bonuses ahead of fair pay for sub-postmasters. |
| He said: "It is incredible that at a time when money is tight the management can see fit to cut a vital payment to sub-postmasters, whilst paying themselves huge bonuses. They probably didn't think 11,000 sub-postmasters were worth it and it begs the question: is it about the people doing the jobs on the ground, or those sitting in ivory towers?" | He said: "It is incredible that at a time when money is tight the management can see fit to cut a vital payment to sub-postmasters, whilst paying themselves huge bonuses. They probably didn't think 11,000 sub-postmasters were worth it and it begs the question: is it about the people doing the jobs on the ground, or those sitting in ivory towers?" |
| Thomson called on the government to review the bonuses for senior management and re-introduce the sorting payment, which he said had seen significant increases in letters being separated. | Thomson called on the government to review the bonuses for senior management and re-introduce the sorting payment, which he said had seen significant increases in letters being separated. |
| The government subsidised the loss-making Post Office with £210m last year and £200m this year and bosses have said they hope to make a small profit when its annual report is published next month. | The government subsidised the loss-making Post Office with £210m last year and £200m this year and bosses have said they hope to make a small profit when its annual report is published next month. |
| Bonus information has never been published before because the Post Office was part of Royal Mail. The former's chief executive, Paula Vennells, is the only manager to have her pay disclosed because she sat on the latter's board. She earned £463,000 last year, including a £173,000 bonus. | Bonus information has never been published before because the Post Office was part of Royal Mail. The former's chief executive, Paula Vennells, is the only manager to have her pay disclosed because she sat on the latter's board. She earned £463,000 last year, including a £173,000 bonus. |
| "This is very much the people at the top looking after themselves and not giving due empathy to sub-postmasters who are really struggling to survive," said Thomson. "Income is absolutely collapsing for sub-postmasters as fewer people use the post office and the promise of more services becoming available there is delayed." | "This is very much the people at the top looking after themselves and not giving due empathy to sub-postmasters who are really struggling to survive," said Thomson. "Income is absolutely collapsing for sub-postmasters as fewer people use the post office and the promise of more services becoming available there is delayed." |
| Last year the Post Office won a £450m contract with the DVLA to issue driving licences, which the union said was vital to the company's future. But similar public sector contracts, including checking and processing passports, worth up to £80m, have been delayed. | Last year the Post Office won a £450m contract with the DVLA to issue driving licences, which the union said was vital to the company's future. But similar public sector contracts, including checking and processing passports, worth up to £80m, have been delayed. |
| Sub-postmasters had been asked to split first and second class post since 2007. There are fears of delivery delays as Royal Mail staff are now tasked with the job instead while negotiations between the union and Post Office bosses continue. | Sub-postmasters had been asked to split first and second class post since 2007. There are fears of delivery delays as Royal Mail staff are now tasked with the job instead while negotiations between the union and Post Office bosses continue. |
| A Post Office spokeswoman said the mail separation scheme was only a five-month trial that was agreed with the NFSP. | A Post Office spokeswoman said the mail separation scheme was only a five-month trial that was agreed with the NFSP. |
| She added: "Performance did not improve significantly and consistently across the network and the payment was put under review. We are still in discussions with the NFSP over next steps." | She added: "Performance did not improve significantly and consistently across the network and the payment was put under review. We are still in discussions with the NFSP over next steps." |
| "Like many companies, the Post Office has various incentive schemes in place to help us to reward and recognise our people at all levels across the organisation This enables us to attract the best people to shape and deliver the success of the Post Office through one of the important phases of its development." | "Like many companies, the Post Office has various incentive schemes in place to help us to reward and recognise our people at all levels across the organisation This enables us to attract the best people to shape and deliver the success of the Post Office through one of the important phases of its development." |
| In recent days it has emerged that Royal Mail's chief executive, Moya Greene, earned £1.6m last year – an increase of more than £500,000 thanks to a long-term incentive plan payout. | In recent days it has emerged that Royal Mail's chief executive, Moya Greene, earned £1.6m last year – an increase of more than £500,000 thanks to a long-term incentive plan payout. |
| The Communication Workers Union said 96% of postal workers are opposed to the privatisation – a position shared by the NFSP. | The Communication Workers Union said 96% of postal workers are opposed to the privatisation – a position shared by the NFSP. |
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