Consignia opts for outsourcing
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Three major contracts are up for grabs as Consignia, formerly the Post Office, has decided to eutsource its 40,000-strong UK vehicle fleet to cut costs.
Consignia is seeking partners for three main sections of its fleet services: heavy goads vehicles, light commercial vehicles and business cars. Companies will be allowed to bid for all three if this produces the best overall package says the firm.
"Outsourcing this part of our operation will mean that we will benefit from the expertise and buying power of one or more of the key industry players," says Consignia's managing director Gerry Smith. "Our preferred options are joint ventures where we would retain a 51% share." However, the firm, has not ruled out the possibility of an outright sale to a bidder.
Potential bidders must express an interest in tendering for the contracts by 10 October.
The employment rights of the 1,700 workers will be protected under the TOPE regulations but John Keggie, deputy general secretary of the Communication Workers Union, says he is opposed "legally, politically and industrially" to the outsourcing decision.
Keggie says the union is looking into the legality of calling a ballot for industrial action. "We believe this decision will be to the detriment of our members," he adds.