News on 16 November 2000
The Post Office is looking for joint venture partners to
give two of its key support services greater commercial freedom. It will
retain a majority share, probably 51%, in facilities management unit Romec
as well as Employee Health Services (EHS) for which it is also seeking
a partner. As part of its own bid to be more entrepreneurial in the face
of stiff overseas competition, the Post Office will itself have plc status
from next April.
Romec has a workforce of 5,000
employees and turnover of £160m. As well as its work for The Post
Office, Romec has external clients including HSBC, Dixons and Marks &
Spencer. The company's services include maintenance, cleaning, telecommunications
installation and support, design, security systems and services, reprographics
and project management.
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| Gerry Smith |
The Post Office expects the search for partners to take
up to 12 months. Commenting on the announcement, the acting Managing Director
of Post Office Services Group, Gerry Smith said: "It’s becoming
clear that for a number of our support services the joint venture option
provides the best of both worlds. This is particularly so for those services
that can be most easily replicated by the external market and therefore
don’t require a significant element of knowledge of Post Office core
business in order to deliver them successfully.
"By retaining a majority share, any new joint ventures will continue
to be part of The Post Office ‘family’ but with greater freedom
to act commercially, attract, recruit and reward employees and trade externally."
Employee Health Services (EHS) has a workforce of 200 including doctors,
nurses and welfare counsellors. They provide a wide range of occupational
health services to The Post Office. The business unit has a turnover of
£13m.
Mr Smith stressed that employee rights will be protected and that the
Post Office will discuss changes with the Communication Managers Association
and the Communication Workers Union.
