Maltapost to shed 226 jobs
Company working with unions and government for redeployment of workers
Maltapost is to make 226 workers redundant, the company Chief Executive Robert Lake said.
Maltapost said the move is necessary to sustain the future economic viability of the company.
The job losses will be phased in over the next year and will see the Maltapost’s workforce reduced from 816 to 500 by September 2003.
In view of this, the company is presently working on a number of options to avoid any redundancies. In fact Maltapost, the UHM and the Government are presently in discussion on how these employees will be redeployed.
In a statement, Maltapost said that similar to other postal administrations world-wide the company faces an uncertain future with declining volumes, increased costs, more competition, and traditional products and services being substituted.
The major threats specifically come from new technology, e- mails, internet and large international alternative delivery networks, it said.
It said that studies that have been made over the past years by postal administrations namely Deutche Post, Royal Mail and Swedish Post, all concluded that the level of employment required within Maltapost plc was of between 500 to 600.
In addressing the company employees, Maltapost Chief Executive, Robert Lake said that “this is a question of survival based on the need to make money to invest in the future, attract potential business partners and meet the needs of stakeholders (staff, customer and shareholders)”.
“We have received a lot of objections due to increasing the standard letter price and changing letter collection times” he added, “but we needed to do this to establish a sustainable base to move forward”.
Maltapost said that trimming down the organisation to deliver the best possible service at the lowest possible cost, is not the only approach the company is taking to meet the challenges it is facing. It is investing in new technology and systems, to improve the efficiency of the business and to open up growth opportunities.
The company is working on a range of new business sources that include document management, courier services, using Malta as a hub for mail in the Mediterranean and expansion of its philatelic, mailhouse and Post Office bill payment businesses.
“But the immediate focus must be on getting our efficiency to the highest possible level in Malta” said Mr. Lake.
“The principles being used are well researched and tested and are based on centralising processing to the Qormi mail centre and centralising and realigning delivery beats based on 5 delivery hubs. These hubs are planned for Gozo, North Malta, two in central Malta and Zejtun. Actual sites will depend on the availability of suitable property” added Mr. Lake.
