Postal shake-up here to stay

Consignia says it wants a more efficient service

Postal chiefs have admitted that they are unlikely to scrap a controversial pilot scheme which is set to introduce new customer charges.

The admission comes as shop stewards and postal service managers are meeting in Edinburgh to discuss plans to scrap the second post and introduce charges for some deliveries.

An area of the capital has been chosen as one of the pilots for the new-style service announced by Consignia.

The company wants to end the second post and charge businesses and individuals £14 a week for having fewer than 20 letters delivered before 9am.

We're having to save £1bn a year. We already have one of the best postal services in Europe and we must safeguard that

Gillian Wilmot, managing director, Consignia

Consignia, which wants to cut 17,000 jobs, believes the change will provide a more consistent service and it is expected to save the business about £350m.

It said the change will mean businesses with 20 or more items will be guaranteed a delivery by 9am with all other post delivered by midday.

The Edinburgh pilot, which is one of 14 trials in the UK, will cover the Gorgie and Colinton areas.

But despite customer concerns about new charges, Consignia's managing director, Gillian Wilmot has admitted that they are unlikely to be reversed.

She told BBC Radio's Good Morning Scotland programme that the company's financial plight ruled out maintaining the status quo.

"We haven't got an option to reverse things," she said.

Increased competition

"We're having to save £1bn a year. We already have one of the best postal services in Europe and we must safeguard that."

Ms Wilmot said that under the new pilot scheme customers will have different options on how their mail is delivered and at what cost.

However, she stressed that the current system had to be changed to allow the company to meet increased competition from e-mail and other mail carriers.

Edinburgh has been chosen for a pilot scheme

Meanwhile, a meeting between mail unions and management in Edinburgh is now underway to work out the practicalities of the scheme.

It is expected that an announcement on the start date for the Edinburgh pilot will be made in the next couple of days.

The Communication Workers' Union said it accepted the need for a rethink on the second post.

However, national officer Dave Ward said the union was "adamantly opposed" to Consignia's intention to cut 17,000 jobs.

He said: "It would stretch the wildest of imaginations to see how taking 17,000 posties off the street could possibly improve the service."

Three-year shake-up

Mr Ward said the trials were nothing more than that at present and there was no suggestion of a "done deal".

Small businesses have already reacted angrily to the move to introduce a weekly charge.

The proposals form part of a three-year shake-up designed to save Consignia £1bn.

It intends to change its name to Royal Mail Group at the end of the year.

The name Consignia was chosen a year ago but failed to gain sufficient recognition from the public.