Any suggestions that An Post staff had not implemented a transformation plan agreed in 2000 were "outrageous", the company's largest trade union said yesterday.
The general secretary of the Communications Workers Union, Mr Con Scanlon, said its members had delivered work practice changes beyond the terms of the deal. But An Post's spokesman said: "We're certainly behind in the implementation of the transformation through the partnership agreement." The company is understood to have forecast a €30 million (£23.6 million) deficit this year, with a portion of the projected loss required to pay for accelerated cost savings.
While provisional accounts are understood to show a collapse in profit margins last year, Mr Scanlon insisted that workers had performed their part of the package. An Post itself had not delivered a new payment structure designed to eliminate heavy dependence on overtime in the State-owned company, Mr Scanlon said. He added: "It's absolutely and totally wrong to say that things haven't been delivered. We have implemented a huge amount of change."
An Post's financial situation has been compounded by slower growth in mail volumes due to the economic downturn, and wage increases. The firm is understood to have lost about €7.2 million from day-to-day operations last year.
An Post is unhappy that the telecoms regulator, Ms Etain Doyle, has made no direction on international postal charges despite receiving a submission for a 17 per cent increase last April. In December, it applied for a seven-cent rise in the cost of the standard domestic stamp, to 45 cents from 38 cents.
Ms Doyle yesterday rejected any suggestion that she was tardy in issuing a direction on international tariffs and said An Post's "turnaround of issues" had been slower than other companies regulated by her office. New international tariffs would not be decided until after she received separated accounts from An Post, she said. These were expected in May. Such accounts were required because international postal pricing systems were highly complex.
Ms Doyle said it was common cause between An Post and her office that she would decide on an interim price increase for domestic post first. While she was still waiting for certain information from the company, she expected to issue a public consultation document soon. A price rise could be introduced in two months, she said. "If we're going to deal with the financial position, the domestic issue seemed more urgent. It seemed better to deal with it first. The domestic issue is more clear cut. On the international side, there will be winners and losers," she said.
Ms Doyle said she was conscious of An Post's difficulties, but was obliged to consider the demands of its customers in her consideration of tariffs and the quality of service offered by An Post. "We want to know the views of all interested parties."