The week that was: 14 October, 2011
Rounding up the top stories of the week on Post&Parcel – with news from Australia, the US, Brazil and about expansion at FedEx.
Australia Post returns to profitable growth
A modernisation plan at Australia Post has seen a creditable turnaround in financial results, with a 31.3% increase in profits on its $5bn revenue in the year to June 2011.
The company saw profits tumble last year, but launched a business transformation programme in April 2010. This week, the Post declared that its program “achieved what we set out to do”, as for the first time in four years revenues grew faster than costs, with a 2.8% rise in overall sales outpacing the 1.2% increase in outgoings.
This week also saw a new direction for Australia Post on parcels, as it seeks to build on opportunities in ecommerce.
House Republicans mark up postal reform bill
US lawmakers debated a rescue package for the US Postal Service in the House of Representatives, but once again controlling Republicans rejected all significant attempts at bipartisan compromise.
The House Oversight Committee prepared the Postal Reform Act – otherwise known as the Issa-Ross bill – for a hearing in front of the full House, but Democrats made it clear that without their support it stands very little chance of passing through the US Senate. Republicans have felt vindicated in their position by a GAO report this week, which played down the possibility of a rebate of a $75bn surplus within the Postal Service’s civil service pension fund.
This week’s hearing saw control measures retained for the event of a USPS financial default, but little of the assistance for USPS financial troubles that Democrats want to see. However, other measures in the Senate and with a Congressional “super committee” could bring in alternative versions of postal reforms.
Brazil’s postal strike ends with court order
Brazil’s postal strike officially came to an end as Wednesday ticked into Thursday, after a court ordered staff back to work.
The Superior Labour Court set the terms of a new collective bargaining agreement, after months of negotiations and 28 days of strike action across Brazil. The new contract is based on a 6.87% pay increase back-dated to August 2011, along with a real-terms increase of R$80 ($45 USD) per month to take effect from October 1, 2011.
Services are now expected to get back to normal within seven days or so, although those that were suspended, such as express SEDEX services, will not restart until October 24.
FedEx expands in North America and Europe
Despite predictions of a slowing global economy, FedEx has been busy expanding its network in western Europe and its key growth area of North America.
In North America, its FedEx Ground division has opened a new $100m small package distribution hub in North Carolina. FedEx Freight has opened a new facility in Butte, Montana. And, FedEx Express has expanded its services in eight cities within Canada.
In Europe, FedEx Express has opened a new station in Strasbourg, France, and is also set to open a new facility in Northern Ireland.
