13/08/2001

Consignia moves to centralise call centres

Consignia is to rationalise its call centre operations in a bid to streamline all the company’s call handling operations.

As part of a rationalisation plan Consignia is understood to be poised to shed some 250 jobs as the company closes call centres in an attempt to cut operating costs.

The plan will see the bulk of the company’s UK call centres close with the work centralised in new super centres, one of which will be located in Belfast. The new super call centres will draw together all calls made to Parcelforce, Royal Mail, and the Post Office.

The move was widely expected on the back of the company’s last financial results posted in June. While sales climbed almost £6 billion to reach £8.1 billion, pre-tax profit dropped by £371 million to £103 million before exceptional items.

This fell far short of the government target of £260 million and cuts have been anticipated in Consignia’s operations to bring the company back on track.

The poor results were attributed to a slow down in the volume of mail handled which had dropped almost 0.7 per cent reflecting increased competition from e-mail, the internet, and text messaging.

With the results well below the expected and below the government target, Consignia have embarked on a productivity drive to reduce operating costs. However, these have already run into resistance from unions as Consignia were attempting to reduce overtime and introduce greater flexibility.

While Consignia say that workers where possible will be offered relocation or other jobs within Consignia, Unions have pledged to fight the jobs cuts. (SP)

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