Shock figures reveal An Post will halt losses
AN POST, Ireland’s deeply troubled postal service, is heading for a surprise break-even profit figure for this year.
As the nation is threatened by a postal strike at its peak Christmas period, the news is bound to strengthen management’s hands during critical negotiations with the unions.
This weekend, workers are balloting on industrial action. Sources at An Post have told the Sunday Independent that the shock turnaround from last year’s losses of 43m is due to once-off savings, unlikely to be repeated in 2005 unless the unions agree to a productivity deal.
The management, led by chief executive Donal Curtin, has refused to pay the national wage rises agreed under Sustaining Progress, pleading inability to pay. This is believed to have saved at least 20m. Other major sources of savings have included a large reduction in the massive overtime bill at the semi-state company, and several cutbacks in transportation costs.
Top management has also put a stop to all recruitment, and has ceased to pay bonuses to staff until further notice. The ban on bonuses includes the chief executive DonalCurtin.
Increased revenue has added to the bottom line. A particular boost was given to An Post’s income by this year’s European and local elections. The company estimates it has taken in at least an extra 7m.
Observers point out the unsustainable 9 per cent rise in costs in 2003. They were at pains to emphasise that the turnaround would not be sustained unless a radical deal was agreed by the unions on all contentious issues including efficiencies, new technology, reductions in staff, excessive overtime and productivity.
The survival of An Post is also dependent on a fresh increase in the price of postage stamps. The company is applying to Minister Noel Dempsey for a rise from the current rate on a standard stamp on a letter from 42 to 57, an increase of 36 per cent. This is likely to create political difficulties for the minister, and is certain to be fiercely resisted by businesses.
An Post has also slashed capital expenditure to meet the financial crisis.
Relations between the two sides are bitter. A union source claimed last night that there was a complete breakdown of trust between the management and unions. Last Friday, on RTE’s Morning Ireland programme, presenter Aine Lalor distanced herself from remarks by Sean MacDonagh, of the Communications Workers Union, when he questioned the honesty of the management.
The accusation was hotly denied by Larry Donald, the company’s chief operating officer, in a later interview on the programme.
It is understood that the management refused to appear on the programme, to cross swords with a union spokesmen. Observers believe that the talks have become so bitter that third party arbitration is inevitable.
Yesterday, Stephen Fitzpatrick, General Secretary of the CWU, said that he doubted the 43m figure for an operating loss given in An Post’s 2003 audited accounts.
“In a nutshell,” he said, “An Post is a basket case, yet we are not allowed to participate in any debate about the future of the company, because there is no debate.”
