Politics
Post Office IT department fired and rehired 'friends' at 'exorbitant' rates, says former HR manager
The Postal Service laid off permanent IT staff and rehired them at exorbitant pay rates, according to the company's former human resources director.
Jane Davies, HR manager at the Post Office from December 2022 to June 2023, said that when she joined the organization she was made aware of the practice, used mainly by the IT department, which saw IT staff be fired and rehired for three months. times more paid.
It came at a time when the Post Office's IT team was working on a massive project to replace Fujitsu's controversial Horizon system, which is at the center of the Post Office scandal.
In his witness statement As part of the public inquiry into the Post Office scandal, Davies wrote that the practice, known as turnover, saw friends and former colleagues of staff sacked and rehired at “exorbitant” rates.
The Government expects all parts of the public sector to use public money responsibly and ensure that services and costs are proportionate, justifiable and value for taxpayers' money, and I considered that POL [Post Office Ltd] failed to meet that requirement in many ways, she said.
Davies said once reversed, full-time employees went from modest salaries to exorbitant daily rates of two to three times their salary, which does not represent value or good money management.
She said contractor roles were not subject to formal review or approval of per diem rates, which would have been the case for permanent staff. So the department repeatedly agreed to excessive per diem rates with the individuals (who were friends and former colleagues of many of the department's current employees or contractors), Davies said, adding that the Post Office was losing permanent talent for the benefit of entrepreneur status. which results in additional backfilling costs.
Uncontrollable spending and decision making
Davies said she spoke and emailed outgoing CEO Nick Read several times about spiraling costs in the IT department, linked to spending on contractors. My emails highlighted that the IT department was out of control in terms of spending and decision-making, she wrote.
Davies described a case where a senior IT manager, employed by the Post Office for seven years, who earned around 120,000 a year, had his contract terminated under a settlement agreement, but was brought back the following week to that which she believed to be a rate of 1,500 per day. as an entrepreneur, which equates to 360,000 per year.
La Poste recently changed its IT department and appointed a new boss, Andy Nice. His main role is to oversee the project to replace the controversial Horizon system used in postal agencies.
The contractors are now being fired by the new management. The Post Office recently confirmed that 80 consultants and 29 contractors would leave over the coming weeks as part of a second wave of job cuts, of which around 100 have already been made redundant.
But that came after the project, known as New Branch IT, saw its costs rise. Computer Weekly revealed in May this year that a review by government project management experts at the Infrastructure and Projects Authority found the Horizon replacement project to be currently unfeasible, with budgets falling from 180 million to 1.1 billion and implementation delayed by five years.
The Post had not responded to questions from Computer Weekly at the time of publication of this article.
The Post Office scandal was first exposed by Computer Weekly in 2009, revealing the stories of seven subpostmasters and the problems they encountered because of accounting software. (see Computer Weekly's timeline of articles on the scandal below).
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