Unions question need for price rises at An Post

A new report, commissioned by four An Post unions, has rejected what it calls the "graveyard scenario" depicted by the company's management and questions the need for any further price rises.

The report, written by economist Paddy Walley, accuses the company of seeking price increases "based on an obsolete view of mail". The unions claim that pricing should aim to grow mail volumes, rather than just trying to grow margins on static or declining volumes.

"A number of price categories should be introduced to cater for a variety of mail types that serve customer needs and grow volumes and revenue," says the report entitled An Post - A New Vision.

The report also says that the Government should consider providing the company with an annual subsidy or compensation fund so that it can fulfil the terms of its universal service obligation (USO). The USO commits An Post to providing every citizen of the State with a postal service at the same rate, irrespective of where they live.

While management is seeking to trim the size of the workforce, the unions' report claims that new staff may be needed.

The report, commissioned by the four largest unions at the company, says An Post should do more to exploit new technologies. It suggests that internet cafes be situated inside some post offices.

"Internet cafes are mushrooming in every community and An Post has failed to exploit the opportunity that this demand could create for local post offices," it states.

It adds that the post office network should be developed into a "one-stop shop for financial, government and internet services in every town".

The report says that the international agreement governing postal deliveries between countries, known as Reims, is costing the company €6 million a year. It says the company should either renegotiate this agreement or withdraw entirely.

Yesterday, An Post management strongly rejected many of the claims made in the document.

It said that mail volumes were falling all over the industrialised world and the Republic was no exception. It added that, while the company supported greater levels of direct mail, one piece of conventional mail was worth the same amount as eight pieces of direct mail.

It also said the Communication Workers Union had a cap on deliveries of five items of direct mail per week per house. It rejected the idea it was deliberately using a "graveyard scenario" to describe the company's position.

A spokesman said that, regardless of the union document, An Post still needed a price increase and major cost savings to pay Sustaining Progress to it staff.

It put the cost of paying its 10,000 staff at €60 million per annum.

"To generate the income required, without a price increase, we would need to increase volumes by a minimum of 50 per cent with no staff increases or any other cost increase at all," said a spokesman.