Post Office staff in wages battle

12:25pm Tuesday 13th January 2009

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EMPLOYEES at Salisbury's main Post Office have not been paid for their last month's work and three shop staff have lost their jobs after the company that ran the branch went into administration.

The Post Office on Castle Street shut without warning last Tuesday lunchtime when Dorchester-based Counter Management Ltd ceased trading.

Although the branch was taken over by another company and re-opened the next day, staff will have to battle to recover their lost wages.

The shop in the branch, which sold stationery, cards and wrapping paper, closed on Saturday and three employees have been made redundant.

"Not to be paid for one of perhaps the most expensive months of the year is an outrage," said a friend of a member of staff at the Post Office who did not want to be named.

Administrator Mike Fortune from Portland Business Solutions said that staff would have to try to claim their wages through a government scheme.

"Unfortunately when they went into administration there was no money available to pay December's wages," he said.

"However all the staff have been told how to apply through a scheme for their money but it might be a matter of six or eight weeks until they get it.

"All the counter staff have retained their jobs however unfortunately I have had to close down the stationery shop as it wasn't economically viable to keep it open and sadly those three staff have been made redundant."

Counter Management Ltd ran Post Office branches in Salisbury, Weymouth and Dorchester and had grand plans for modernising its accommodation and expanding services.

"This was the crux of the problem," said Mr Fortune.

"Their business model relied on the changes. The Dorchester branch had been updated and was working pretty well but they couldn’t get planning permission in Weymouth and there were delays and problems with changing the Salisbury branch too."

Counter Management Ltd went into administration with debts of £400,000 and the three branches closed temporarily to allow administrators to balance the tills.

"We are sorry for any inconvenience last week," said Mr Fortune. "But for customers now it is business as usual."

A spokesman for the Post Office said: "We are unable to comment on matters relating to our franchisees."