Tag: Republic of Ireland

Post office banking delivers

European banks have been slow to exploit the distribution capabilities of domestic post office networks, focusing instead on the expansion opportunities provided by organic growth and mergers and acquisitions (M&A), said Carl Holsters, member of the executive committee of the Belgian Post Group, speaking at VRL’s International Retail Banking Forum (IRBF) last month.

And with revenues from postal services shrinking, the contribution made by retail financial services is becoming increasingly significant, helping European post offices prepare for full deregulation of the postal sector in 2009, when they will lose their national mail monopolies.

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Irish An Post staff accused of sabotage in bid to turn public against company

Postal workers are waging a campaign of sabotage and disruption against An Post, it was claimed last night. The company said that the aim was to ratchet up the pressure ahead of threatened industrial action next week over An Post’s refusal to implement an agreed pay increase. In the past month alone An Post has logged more than 30 incidents of what it believes are deliberate attempts to delay mail services in order to get the public “off side” with An Post by presenting it as being unable to run an efficient service. He cited experienced drivers “getting lost” on their way to mail centres in Dublin, Cork, Portlaoise and Athlone. Communications Workers’ Union general secretary Steve Fitzpatrick said that if allegations that his members had wilfully delayed mail were substantiated, he would not defend them. However, he said that his union had been accused of intimidation, fraud and now sabotage and “there was not one shred of evidence the CWU was behind this”.

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Irish An Post needs to address the onset of competition

An Post requires radical restructuring, new work practices and greater volumes of mail rather than higher prices. With full market liberalisation around the corner, An Post is undoubtedly under pressure and the pending strike by the Communications Workers Union (CWU) is adding significantly to its woes. The union’s refusal to implement the Labour Court’s recommendations is indicative of the problems that the company faces. Its survival depends on both unions and management adapting to the new competitive environment that looms. The payroll bills at An Post account for 64 per cent of its operating costs and inefficient work practices are damaging the company’s competitiveness.

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Minister warns An Post could be ‘extinct’ in 4 years

An Post will be “extinct” in little more than four years unless postal workers accept major work changes, the Government has warned.

From January, private companies will be able to carry letters weighing more than 50g, and ordinary letter post will be opened up by 2009.

“We have liberalisation coming. It is inevitable in 2009. It is already there in a number of areas. If An Post isn’t strong enough to withstand competition it is going to be extinct very, very quickly after 2009, if not before that,” said Minister for Communications Noel Dempsey.

Speaking in Killarney, Co Kerry, on Saturday, the Minister was critical of existing work practices in the semi-State company.

Describing them as “archaic”, he said postmen’s basic pay had been increased over the years through the common availability of overtime. “You have a situation whereby people get paid overtime on their holidays. You have a situation where people can bank their overtime at one stage and use it at another time.”

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Embattled An Post faces losses of 12m without hike in stamp price

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.

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