Consignia and unions 'strike deal over job losses'

Consignia has reportedly struck a deal with trades unions over job losses - avoiding compulsory redundancies and making strike action less likely.

The Financial Times reports that officials from the Communication Workers' Union claim to have negotiated an agreement which ensures that 30,000 redundancies over the next three years will be voluntary.

The paper says the agreement is understood to promise Consignia employees alternative jobs throughout the company formerly known as the Post Office, and to protect pay levels for those that move.

According to the FT, the union's postal executive is expected to decide today whether to back the agreement.

The paper says the agreement is likely to cost Consignia £400m (€650m) in redundancy and relocation expenses.

If the package is accepted, the threat of nationwide industrial action by 150,000 postal workers will recede.

But problems are believed to remain over pay, and the two sides are to go to mediation to settle a disagreement over a recent settlement.

Consignia declined to comment on whether a document outlining an agreement on voluntary redundancies existed. But it said it had given the unions proposals on tackling job surpluses.

A spokesman told ft.com: "We are committed to consulting with the unions about surplus staff."