Irish Post Service to cut 1,100 jobs
The Irish Republic’s An Post postal company today confirmed plans for more than 1,100 job losses as well as office closures as part of a cost-cutting operation.
The company wants to cut 1,140 jobs and close 26 sub-post offices by the end of next year following a projected deficit this year of 37 million euros (#22.6 million) _ more than five times as much as its seven million euro (#4.3 million) loss in 2001.
The smaller post offices will begin to go in the near future, being replaced by a “postal agency” scheme, initially on a pilot basis, with operators being paid a fee per item of business rather than a salary.
Postal workers have been told that unless the 1,140 jobs _ about 8% of the company’s workforce _ is not shed by the end of 2003, An Post will run out of cash completely.
Voluntary severance and early retirement packages are to be offered in a bid to speed up the process.
Under current conditions, as well as the 2002 anticipated deficit, An Post expects to lose a further 25 million euros (#15.4 million) next year.
The bulk of the job losses, about 800, will be in the company’s letter post division.
An Post is currently awaiting approval for a rise in the price of stamp prices, and chief executive John Hynes said the failure to secure an increase before now had been a major contributor to the company’s financial problems.
He said letter prices were now below 1991 levels and maintained that unless the rises being sought were granted “all the cost savings outlined today will not save An Post from financial disaster.
They are absolutely fundamental to a viable future.
