Consignia Chief to Leave Post as Losses Mount

Share this content:
Dr. Neville Bain, chairman of Consignia -- the parent company to the British post office -- will step down when his contract runs out at the end of the year, Patricia Hewitt, Trade and Industry secretary, told members of parliament last week.

"The service that is being provided by Consignia at the moment is simply not good enough," Hewitt reportedly told the members. "I do expect the management and the unions who have been asking for years for greater commercial freedom now to work together to use the commercial freedom that we have given them to deliver a better service to customers."

John Roberts, Consignia's chief executive, agreed there was a pressing need for productivity gains within the organization. "The key signal from the results is that our costs are running ahead of income," he said. "We have got to improve efficiency if we are to return to profit."

Consignia -- which includes The Royal Mail, Post Office and Parcelforce -- reported last month that pre-tax losses for the 26 weeks ending Sept. 23 more than doubled to $398.5 million compared with losses for the same period last year.

Consignia had recently announced that it would look to save $1.7 billion by April 2003, equivalent to a 15 percent reduction in its cost base.

Structural changes were urgently needed for the parcel shipping division, Parcelforce Worldwide, Bain said.

"We are determined to take the action necessary to give Parcelforce Worldwide a profitable future," Bain said. Insiders said that this would probably include job cuts, which may come over the next 18 months.

Consumer watchdogs called for Bain's dismissal last week after it announced its first-half performance.

Of the financial results, Peter Carr, chairman of Postwatch -- a consumer watchdog body for the UK postal industry -- said, "surely the time has come to review the future of the Consignia leadership following yet another set of appalling results.

"This is a plc and the normal rules are that consistent failure results in shareholders demanding change at the top," Carr said. "What we are seeing are consistently bad results with no real light at the end of the tunnel. What we need is innovation, creativity and a change of culture, and that normally requires a change of leadership."

Sign up to our newsletters

Company of the Week

Brightcove is the world's leading video platform. The most innovative and respected brands confidently rely on Brightcove to solve their most demanding communication challenges because of the unmatched performance and flexibility of our platform, our global scale and reliability, and our award-winning service. With thousands of customers and an industry-leading suite of cloud video products, Brightcove enables customers to drive compelling business results.

Find out more here »

Career Center

Check out hundreds of exciting professional opportunities available on DMN's Career Center.  
Explore careers in digital marketing, sales, eCommerce, marketing communications, IT, data strategies, and much more. And don't forget to update your resume so employers can contact you privately about job opportunities.

>>Click Here

Relive the 2017 Marketing Hall of Femme

Click the image above