Year: 2005

Poised this weekend on the brink of a major industrial dispute, An Post is understood to have budgeted for operating losses for the next two years. Internal accounts have predicted that the present resistance by the Communications Regulator (ComReg) to an increase in the price of a stamp will doom the company to losses of 12.5m in 2006 and that could rise to 20m in the following year.

Furthermore, the company management, under CEO Donal Curtin, is believed to have told ComReg it will be acting contrary to its statutory obligations if it forces An Post to incur these losses.

An Post sought to increase the price of a stamp from the present 48 to 60 earlier this year, arguing that its prices had been increased only once in the past 12 years.

Strike action by An Post workers could allow a new company to enter the market, the Government warned last night.

After the Communications Workers Union (CWU) voted overwhelmingly for stoppages, Communications Minister Noel Dempsey warned the dispute could end up with the monopoly in the postal market being shattered.

“If customers, if businesses and individual customers in this country can’t get a postal service from An Post because of the actions of the CWU then the Government will have to put in place a system that will allow other people to come in to the letter post business and provide a proper service,” the minister said.

The country’s 8,500 postal workers are to strike in a fortnight’s time after 90pc of members voted for industrial action.

A decision by An Post staff to strike over a pay disagreement is grossly irresponsible and unnecessary, the postal company said.

The Communications Workers Union (CWU) voted almost unanimously to take industrial action, with 90% of those who took part in a national ballot supporting the move.

The union is demanding full payment of the terms of its Sustaining Progress agreement, claiming workers and pensioners have been left without the minimum in cost of living increases.

An Post has not honoured the terms of the deal, pleading inability to pay because of financial difficulties.

In a statement An Post said: “Disruption of the national postal service by members of the Communications’ Workers Union is grossly irresponsible and unnecessary.

The postal service could come to a standstill in just two weeks pending the result today of a Communications Workers’ Union (CWU) ballot on industrial action.

The outcome of the ballot will not be known until 2pm. However the union said last night that there had been “very strong” support for industrial action, up to and including a strike, which would involve a total stoppage of postal deliveries.

The union opened the ballot on October 5th over its claim that An Post has failed to honour national pay agreements.

It has accused the company of failing to pay workers and pensioners cost-of-living increases due under the Sustaining Progress national agreement.