Stamp cost to rise 25percent as An Post hits black
As An Post stands poised to reveal a dramatic 45m turnaround in its fortunes later this week, the Sunday Independent has also learned that the troubled semi-State is set to apply for a 25 per cent increase in the price of a postage stamp.
It is understood that the semi-state company will seek to have the cost of posting an ordinary letter raised to 60.
The beleaguered company will unveil a surprise return to profit in its 2004 annual report due to be published on Thursday.
Ireland’s most troubled semi-state will report an operating profit of 1.68m when chief executive Donal Curtin releases the annual report at the GPO in Dublin. This reverses the massive losses of 43m which were reported in Curtin’s debut presentation at An Post 12 months ago.
An Post’s profit figures improve further when one-off property transactions are taken into account. The surplus is expected to hit 6.5m, when the asset sales are included. Most of these additional profits are due to 5.3m disposals of surplus properties in Blackrock, Co Dublin, and in Limerick.
An Post has managed to reverse its run of losses despite being stymied in its quest for a stamp price increase in May last year. Insiders say that the management were able to reduce staff numbers by 500 in 2004 without implementing a redundancy programme, but by natural wastage and a determination not to fill any but the most essential vacancies.
It is believed that a stamp price increase will only be granted if long-standing work practice disputes and wage claims are resolved.
But the turnaround at An Post is fragile and its continuation is dependent on sustained cost savings and increased productivity at the semi-state.
The most contentious source of savings in 2004 was the company’s refusal to pay the national wage deal, due to the staff under the ‘Sustaining Progress’ agreement. Trade union sources assert that this saved the company 30m last year and that the profits would have been torpedoed into deficit, if paid. An Post has pleaded “inability to pay”, a serious embarrassment for a State-owned outfit.
An Post management insists there will be no wage rise under ‘Sustaining Progress’ until a programme for change is agreed with the unions. The issue is part of the dispute between An Post and unions, but has now been referred to the Labour Relations Commission for assessment. A finding is due early next month.
The pay issue is further complicated by upcoming negotiations for a successor national wage deal. Unions and management are due to start talks later this year.
Meanwhile, the Labour Court is set to adjudicate on the thorny dispute over work practices at An Post in less than two weeks’ time. It is believed the court will meet on May 6 when it will make radical suggestions about the postal collection and delivery services, currently regarded by management as an inefficient and costly item. However, the findings are not binding on either party.
Reliable sources at An Post claim the firm remains on course to break even, or record a small surplus, in 2005. The integration of the loss-making SDS delivery service is expected to be finalised in the coming months.
They expect coffers to grow by 20m after the sale of the SDS site on Dublin’s Naas Road, but most of the proceeds are earmarked for the anticipated redundancy programme. It is also expected that the balance sheet will be beefed up by a revaluation of An Post’s property portfolio.
