Network Transformation MK2 will be upon sub-postmasters shortly. This plan was devised in the wake of the failure of the Network Transformation program.

NFSP Support for this program will be voted on at a hastily arranged special conference on the 26th November. If any NFSP member has concerns about this program they should impress this on their elected representative as soon as possible

Important: The details and the small print are not currently available for Sub-Postmasters or the Special Conference Representatives to give proper and due consideration to this program. As such this should be considered incomplete and may be subject to NFSP omissions 

Summary:

NT Mk2 is mainly designed to increase the take up of the Post Office Local Model. To that end the program involves compulsory relocation against the will of sub-postmasters of Sub-Offices to premises deemed viable by Post Office Limited (Read Significant retail offerings to subsidise the post office staffing costs). Depending on the particular circumstances it may involve an increase to 26 months salary as compensation (previously 18).

Post Office Limited will attempt to gain consent for these measures by enticing Sub-Postmasters to fill out a survey for which the postmaster will receive £2,000. However Post Office Ltd may then attempt to bind the Sub-Postmaster to Post Office Ltd particular decision on the future of the given office be it the local model or forced relocation. In addition, this £2,000 is consider by the NFSP to be an appropriate pay deal over 2 years, an unconsolidated taxable lump sum deal linked to Transformation program. And of cause includes the mantertory threat against Sub-Postmasters

“Failure to complete the survey, or providing materially incorrect information, will result in no payment or a repayment to PO”

Detail:

Post Office Limited have determined their vision for the future of the Post Office, the vision is as follows.

4000: Main/Core Mains, offices Post Office Ltd wants to retain and convert
300: Crown Offices
2000: Community Sector Branches
Remaining Branches: Local Model or designated as an “unviable” Branch

Core Mains:

Main particulars are almost unchanged from the current offer apart from contract changes is now optional (keeping your current contract is without “investment”)

If you are selected you will be offered refurbishment money, and an income guarantee until 2015 if you sign the main contract.

The option to remain on your existing contract will remain, but if you choose this option you will not receive the package listed above.

The option to leave with compensation remains if a suitable host can be found. Compensation has been increased to 26 months worth of remuneration based on best of last 3 years, subject to a cap of £200,000 if provisional resignation is signed by 30 March 2014

Other option is to sell business with the new operator being appointed as a Main.

From NFSP Slides: Sell the business on as a Main model if advertised by
30 March 2014 (after that date treated as a Local)!

Community Sector Branches:

Post Office Ltd will select a minimum of 2000 Branches which are deemed as “last shop in the village” and this sector will be known as the Community Sector, these offices will remain on their current terms and conditions, and  a £20 million fund set up to allow them to modernise and improve their premises., the Government will continue to provide state funding to underpin this sector beyond 2015.

The size of this sector is not set in stone as other larger offices may well have to be added to it

The community is defined as a direct ‘crow flies’ distance of 0.5 miles from the current post office

Should ‘only shop’ agents wish to leave the network the potential options are:

1. Sell their retail business and premises on the same contract

2. If no alternative outlet is identified to host the post office, the existing agent cannot exit the post office network

Remaining Branches:

The rest of the Network will be assessed for an individual offices suitability for the new PO Local model. With this model Post Office ltd is trying to move itself into a business add-on rather that a proper service. However the ability of Post Office Ltd to complete in this sector is hampered by unrealistic administrative burdens, business restrictions and an extremely, long complex and one sided contract unsuited for an “add-on” proposition.

Post Office Ltd will conduct a survey of Postmasters to ask them if they wish to convert to a local model onsite, if they do they will receive one years advance of remuneration, and a income guarantee until 2015, plus refurbishment money.

Also according to the NFSP “Significantly enhanced package to convert from a traditional office to a Local if the subpostmaster or operator has sufficient retail turnover and opening hours.”

All offices will be asked to complete the survey, if you complete the survey you will be paid £2,000, however this may commit you to being bound by the outcomes of NT and is also consider your pay deal for 2 years.

Post Office Ltd will use the results of the survey to select which Offices are suitable for conversion to PO Local, if you are selected you will be asked to accept the conversion package, or risk being compulsory closed if a suitable host can be found.

Insufficient retail turnover and opening hours in your business will make you a candidate for compulsory exit

Unviable:

For those offices who do not fulfil the selection criteria for PO Local, you will be designated as an unviable Branch, and you will be compulsorily closed if a more suitable host can be found.

If you fall into this category and no suitable host is found then you will be placed into the Community Sector.

Any Branch that refuses to engage with the new process will be compulsorily closed if a more suitable host can be found, if no host can be found then you will stay as you are on your current contract at least until an alternative can be found.

Compensation

Compensation for leavers to be increased from 18 months to 26 months based on the best of the last three years (capped at £200,000).