An Post's challenges

The temporary withdrawal of services by about 10,000 postal workers last Wednesday caused inconvenience to customers and damage…

The temporary withdrawal of services by about 10,000 postal workers last Wednesday caused inconvenience to customers and damage to their own interests. An hour-long stoppage may not appear important when it forms part of a Europe-wide protest by trade unions against a decision by the EU Commission to open up the postal market to full competition by 2009. But, at a time when the State body is struggling to remain viable, any antagonisation of its customers is not the way to go.

The fact that those post offices operated by independent postmasters were not involved in the withdrawal of services says it all. Attempts by the Communications Workers Union (CWU) to justify the stoppage on the grounds that the introduction of full competition would have disastrous consequences for the universal services obligation, under which all areas of the country are entitled to receive a common level of service at the same price, amounted to little more than obfuscation. The Government and ComReg have a responsibility to ensure such standards apply under a new regime.

Rapid change is upsetting. Workers within the postal services have had a difficult time in recent years as traditional services and job practices became untenable in the face of increased competition and new technologies. In such circumstances, trade unions can face impossible demands from a militant workforce.

An Post lost money in 2003. And attempts by management to address that situation led to disputes and work stoppages in 2004. The company sold off properties and returned to profitability in recent years. It launched a new retail banking service in association with a Belgian bank earlier this year. But resistance to change within its core business has persisted.

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In 2005, ComReg authorised price increases of almost 50 per cent for parcels and large envelopes. The cost of basic stamps rose by 15 per cent earlier this year. At a time when competition from private enterprise was eating into the core business of An Post, with competition for ordinary letter and card mail scheduled to start in 2009, raising prices, instead of changing work practices and increasing productivity, appeared to be a recipe for disaster.

A recent survey showed that 20 per cent of Irish businesses are dissatisfied with An Post's parcel service and use other providers. Letter post is equally vulnerable. The company delivers 75 per cent of standard mail by the next day, as against its delivery target of 94 per cent. In such circumstances, protesting against the introduction of competition in 2009 serves nobody's interests.