Some postmasters will be worse off financially under plans to bring in a new pay structure next year, an organisation that represents workers has warned.
The new Mails Distribution Agreement is set to come into force on April 1, 2022, and will see postmasters paid a percentage of the value of products and services sold at the Post Office.
But the National Federation of Subpostmasters (NFSP) has warned this could mean some workers that send a higher proportion of letters will lose out compared to the old system.
The NFSP estimates around one in seven postmasters, or 14% in total, will be worse off.
However, postmasters sending more parcels will benefit and earn more through the new arrangement, the NFSP said.
At the moment, postmasters earn a fixed fee for each packet, parcel or large letter sent or stamp sold.
NFSP CEO Calum Greenhow told The Grocer : “Naturally those who are losing out are understandably very concerned.
“We’re working with the Post Office to protect those who could potentially lose out so that they’re able to protect their business.”
Mr Greenhow added that the new system is being brought in because The Post Office “in essence was overpaying for the large letters, and underpaying for the parcels”.
He said the new system would “make it fairer and make sure for parcels, people are getting paid appropriately”.
The new payment structure was proposed by the Post Office last year and was originally scheduled to come into force on January 1, 2022, but was pushed back to April.
The warning from the NFSP comes as it was confirmed 31 Post Office counters would be permanently closed.
CJ Lang said it is removing the counters from company-owned stores in Scotland over the next six months.
Post Office mails product portfolio director Mark Siviter said: “We have consulted with almost 8,000 postmasters on a one-to-one basis about what the new agreement with Royal Mail could mean for them.
“The vast majority will benefit, and overall postmasters will receive an estimated additional £10m worth of remuneration compared with the financial year 2020/21, consistent with market performance.
“With mails products and services alongside banking services making up the bulk of postmasters’ remuneration, we know just how important this is for postmasters.”
