In an effort to cut costs, Britain's postal service Consignia plans to close up to 3,000 post offices, according to wire service reports.
Late last month, Consignia said it would slash 15,000 jobs over the next three years to cut costs in an atmosphere of growing competition and staggering budget deficits.
This move comes while Consignia is still involved in settling a pay dispute with the Communications Workers Union, which represents more than 145,000 Royal Mail postal workers. (DIRECT Newsline, March 25).
The closures, mostly aimed at small substations run as franchises by family businesses, are expected to be voluntary.
Consignia is losing $2.3 million a day and wants to cut costs by $1.8 billion a year as it struggles to meet competition from rivals like Hays, Business Post Group and Dutch Group TNT Post.
Meanwhile, Billy Hayes, leader of the Communication Workers Union, which represents more than 145, 000 U.K. postal workers, condemned Consignia's plan as "folly."
