Derry’s Custom House Street Post Office to be franchised under major shake-up of network

The Post Office announced on Tuesday that following a Board decision it was moving to a fully franchised network as part of its commitment to deliver a ‘New Deal for Postmasters.’

The Custom House Street Post Office in Derry city centre is among 108 hitherto Directly Managed Branches that will be put out to franchise.

Reacting to the announcement Foyle MP Colum Eastwood said: “This will cause more uncertainty for workers and people who rely on the Custom House Street branch. What’s important right now is that staff at the post office are looked after and that services are maintained.

“I have been in touch with senior directors at Post Office today to seek clarity on their proposals for this important hub and to make the case for our community.

"The information we have received today is that they plan to transfer the business to a franchisee by the autumn and they do not anticipate the branch closing.

"It is important that any process is conducted in close cooperation with workers, their unions and the local community. We cannot accept any reduction in service or staff.”

The Post Office said that subject to Government funding, the last 108 DMBs which are operated by the Post Office will be franchised by the autumn.

Nigel Railton, Post Office Chair, said: “Moving to a fully franchised network is one part of enabling the Post Office to deliver a ‘New Deal for Postmasters’, helping to create a long-term, sustainable future for the Post Office.

"By franchising these branches, we are protecting access to our services for communities right across the UK and realising £40 million worth of savings that will enable us to uplift postmasters’ remuneration by up to 10 per cent.

“Over the coming months, we will continue to work with our unions to ensure that we treat our staff working in these 108 branches with care and respect through this transition, consulting with them on proposed changes.

"The 108 Post Offices will either stay in the same location where possible or be located close to the existing location, meaning customers will continue to have access to a full suite of products and services.”