Tag: Republic of Ireland

Internal report said SDS plagued with difficulties

An Post’s loss-making parcel division SDS has been suffering from poor sales activity, high absenteeism, poor credit control and a failure to implement change, according to a confidential internal report.

This week the company announced it was closing SDS and seeking 270 voluntary redundancies. Chief executive Mr Donal Curtin said SDS had become a serious drain on the company, losing 20 million in the last two years alone.

The report by consultants Paul Sweeney and Associates was commissioned by a joint management-union group and circulated internally last February. It warned that closing the division could have a negative impact on the industrial relations climate at An Post generally.

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An Post and unions at odds over job loss total

Unions and management at An Post have clashed over the number of redundancies likely to result from the closure of the company’s loss-making parcel and courier service SDS.

The company yesterday announced that 270 of the 450 staff at SDS would lose their jobs with the remainder transferring to other positions within An Post.

However, the Communication Workers Union (CWU) said it was seeking information on what was going to happen to 400 other staff involved in providing the SDS service, including both the remaining company staff and other An Post staff who work for the parcels company.

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No forced job losses at closed parcels section, says An Post

Communications Minister Dermot Ahern said yesterday that An Post’s decision to close its SDS parcels division was “a pretty serious situation” for the company and its employees.

He said his department had been in contact with An Post management, which assured them there would be no forced job losses. “We are talking about a total employment of about 500 in SDS and about 180 of those, we hope, will be retained,” he said. A total of 270 jobs are expected to be lost, while the remainder of the jobs are on a contract basis.

There would have to be discussions with staff and unions about how SDS would be reintegrated into An Post, he said.

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An Post expected to discuss closure of SDS

The potential closure of An Post’s loss-making parcel and courier service SDS is expected to be among a range of issues discussed by the board of the company today.

The closure option is just one of several proposals expected to be considered.

Another option being considered is reintegrating the service into the main An Post group.

Both plans might allow An Post to dispose of the 80,000 sq ft SDS site on the Naas Road, which has been valued at more than E20 million.

The company has been engaged in major property disposals in the last two years as its finances have deteriorated.

An Post has refused to comment on which option has the support of senior management.

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EU state-aid rules may force some markets to open

In their new rules restricting state aid to troubled companies, European Union regulators could require governments to open protected markets in exchange for approving some corporate bailouts. The EU announced new guidelines yesterday aimed at forcing companies to pay back state aid. But the initiative doesn’t stop at demanding cash or the selloff of assets in return. It also gives governments the alternative of fostering more competition as a way to gain EU approval for aid to companies in distress. But experts say the rules could magnify differences within Europe over the pace at which governments permit competition in protected sectors. France and Germany, which have been outspoken about protecting their industrial giants, already accuse the European Commission of jeopardizing jobs and stability by moving too quickly to liberalize markets.

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