Campaign to save An Post launched

national | worker & community struggles and protests | feature

Friday November 05, 2004 17:16

by Paul Kinsella - CPSU An Post Branch Committee

paulkinsella53 at yahoo dot com

53 Lorcan Grove, Santry, Dublin 9, Ireland

085-1478100

An Post Social Obligation - The Need For Government Financial Support by Paul Kinsella CPSU

When public services are dismantled a number of tactics are employed. In Dublin Bus they are at the stage of introducing competition: in An Post, other than the letter service this has long been in place. In Aer Rianta the asset strippers are circling as the value of the company is run down. This report, by Paul Kinsella, on the campaign within the An Post unions shows the same tactics at work. The Flynn Report on the service is ignored, elements of the service are closed for being 'uncompetitive' under government set rules and the workers are denied their Partnership agreed wage increases. The campaign material includes draft letters for An Post workers write - have a look, maybe we can all be the mail, as well as the media, for a day.

Selections from the Report.......
The Group of Unions in An Post have recently agreed on the concept of a campaign to change Government policy towards the proper funding of An Post. This decision was made in light of new developments in Industrial relations in the company, the refusal to pay the SP national wage agreement (5% on 1-8-04) and the unilateral decision to close down SDS with the loss of 274 jobs. The use of the present “crisis” in the finances of the company to drive down hard on the Unions and Staff is real, and now firmly underway. In conjunction with the treatment of other Semi-State companies it is clear that this process is politically motivated..........

In 1999 Minister of Communication, Mary O’Rourke commissioned the Flynn Report 2000 to review the Sub Post Office Network. It found, "...As part of the obligation placed on An Post to provide a nationwide service, the Post Offices Branch Network provides access for citizens to mail services, including postal mailing; stamp sales; registration; ancillary postal services. The Post Office Network will be under extreme financial pressure for the foreseeable future. Closure of Posts Offices will only reduce the size of the loses, it cannot stop the loses from the post office network. Also the introduction of new business cannot address these loses." But the Government glossed over the report...........

Postal Sector and Social Obligations
I believe that the group of Unions in An Post should be calling on the Government to make a commitment to a universal obligation to both the Postal and the Post Office Network and for this service to be maintained and further improved. A mechanism should be put in place to access the cost of this social obligation (in light of the further deregulation to take place). And the Government to fund this social obligation.......

An Post is the only major Semi State Company which does not receive an annual Government Subvention for the social services it provides. An Post Group of Unions Agreed Campaign for Government funding of An Post The financial crisis in An Post is directly linked with the Universal Service Obligations of the company, and that the Staff, Customer and Services of the Company are now been targeted, in a bid to let the Government off the hook as regards their Obligations to the Public.....

CPSU Press Release
Draft Letters

The Group of Unions in An Post have recently agreed on the concept of a campaign to change Government policy towards the proper funding of An Post. This decision was made in light of new developments in Industrial relations in the company, the refusal to pay the SP national wage agreement (5% on 1-8-04) and the unilateral decision to close down SDS with the loss of 274 jobs. The use of the present “crisis” in the finances of the company to drive down hard on the Unions and Staff is real, and now firmly underway. In conjunction with the treatment of other Semi-State companies it is clear that this process is politically motivated. CPSU Campaign to secure Government funding for An Post launched prior to the Local and European elections last June 2004

Since the break-up of the Dept of Posts and Telegraphs in 1983 there has been little financial support from the Government of the day or any of its successors which was promised at the time. This is in direct contrast to Telecom ( now Eircom) which received massive government funding to- update the phone network. An Post has continually struggled financially and will do so until the social obligations are costed and the government cover such costs. The sale of “Ireland-on-line” in 2001 has only delayed the stark reality that An Post cannot continue to deliver the high quality public service to the Irish nation and at the same time be financially viable. The continuing financial loses in An Post cannot be sustained, with loses since 2001 amounting to 67 million Euro. As the Chief Executive of An Post said it will be increasingly difficult to deliver to every household in the future under the financial constants placed on the Company.

Flynn Report 2000

This report was commissioned by the then Minister of Communication, Mary O’Rourke to review the Sub Post Office Network, in December 1999. The report was compiled by former ICTU president, Phil Flynn.

Conclusions of Report
As part of the obligation placed on An Post to provide a nationwide service, the Post Offices Branch Network provides access for citizens to mail services, including postal mailing; stamp sales; registration; ancillary postal services.

The Post Office Network will be under extreme financial pressure for the foreseeable future.
Closure of Posts Offices will only reduce the size of the loses, it cannot stop the loses from the post office network. Also the introduction of new business cannot address these loses.
The Government has supported the social welfare contract in spite of challenges to the European Commission that it should be open to tender.
An Post cannot reconcile its legislative obligation to trade effectively with the Government directive to keep all 1800 sub Post Offices open.
Flynn outlined the financial subsidy needed to maintain the Post Office Network. At the present taken into account that 200 post offices have converted to agency basis is 24 million euro approx.
Flynn also called for the Government to direct as much business to the Post Office Network; such new business could include the development of the Post Office Savings Bank as a people Bank with a Universal Bank Account.
There is obviously a contradiction between the Government stated rural policy (May 1999 white paper) and their lack of support for the Post Office Network.

Government glosses over report

Following the release of the Flynn report, the Government sidelined it into an interdepartmental Committee. The outcome of this Committee was a once off payment in 2002 of 12 million euro to fund the conversion from Post Offices with the full range of services to agency basis with a very limited service. The also talked of created the network as an e-mail hub/ government information service but this seems to have also been buried.

The changing status of the network has meant the creation of 146 agency offices with limited services. 274 Sub Post Offices have been closed or “converted”, with a target of 440 by the end of 2005. There are 500 non-atomated Post Offices 900 automated Post Offices and 100 company automated Offices with 50 to be converted to agency (full range of services).

The Post Office Division is running at a break even at the present. This is due to cutbacks and the introduction of new services i.e. (AIB). The Post Office Network will come under increasing financial pressure if the proper level of investment, major new business and the development of existing business are not forthcoming. The general standard of accommodation and of the Post Office Network is in a deplorable state, which inhibits the creation of any new business and the expansion of its present activities.

The future plans of An Post are to close or “convert” Post Offices by stealth, however they will probably ease this process around the local elections.

Postal Sector and Social Obligations

The Company will not disclose any financial details in regards to its USO postal obligations as this information could be very useful to potential competitors. The postal service will be fully open to competitors from January 1st 2009 but in the meantime a continuing amount of the Postal Business will be open to competitors. It has been reported in the media that the cost of postage in rural areas is up to four times the cost in urban areas.

The Company have given up on the idea of roadside letter boxes because the regulator said there imposition on households was illegal. Rural polititions came out against them mainly out their own political expediency. The company cost the savings to An Post for the mandatory introduction of road side letter boxes, could have been up to 20 million Euro.

The significance of the reserved area, apart from defining the size of monopoly area, is that the powers of the regulator are greater in the reserved area than they are in the rest of the USO. In particular from a pricing point of view the Regulator has to give prior approval for all price increases in the reserved area.

I believe that the group of Unions in An Post should be calling on the Government to make a commitment to a universal obligation to both the Postal and the Post Office Network and for this service to be maintained and further improved. A mechanism should be put in place to access the cost of this social obligation (in light of the further deregulation to take place). And the Government to fund this social obligation.

If the group of Unions in An Post do not put the necessary resources and effort into protecting Postal services, their members will come under increasing pressure to diminish their conditions of employment to make the necessary savings, so that the company won’t become financial insolvent. A Government Subsidy (CIE, RTE, ESB, and REGIONAL AIRPORTS) for the protection of a Social Obligation is clearly allowed under European Union legislation. The easier option for this right wing Government to take is to force the workers pay for the necessary saving the Company is under pressure to make, and at the same time it will show no real interest in the maintenance of anything that needs government financial support. They believe that if the Post Office cannot survive on its own, the solution is to cut the service by stealth and make the workers pay for the subsidy the Government should provide.

We need an independent audit into the finances of the Company (in light of the recent financial fiasco) and the cost of its USO (SOCIAL OBLIGATIONS) services. This audit should outline what these obligations are and how they should be funded. Such a report should have a major Input from the group of Unions and other interested parties i.e. rural action groups. It is clear that the opening of the postal network under deregulation will need specific policy from the Government if we wan to o maintain services to the general public and conditions of people employed in An Post.

An Post is the only major Semi State Company which does not receive an annual Government Subvention for the social services it provides. The Officers of the CPSU Branch met recently, and the following are the areas we feel should be pursued by Group of Unions, in such a campaign.

We need to highlight these issues and seek support form other Trade Unions, rural groups and Political parties.
Seek to have the An Post Trade Unions to adopt a policy of campaigning for proper funding for An Post.
Lobby the Political parties regarding their policy and record regarding the management of An Post.
Involve the membership in a limited campaign around the local elections.

An Post Group of Unions Agreed Campaign for Government funding of An Post

Clear aims
The campaign must have clear aims centred on the financial funding of specific services and the universal obligations of An Post.

Targeting Political Policy
The campaign will entail the Group to direct some of their attention towards the political body. To adopt a new strategy of pressuring the government through a number of means;
Political lobbying
Media presence
Protest and mobilising memberships
Targeting the next general election

It should be noted that thousands of people are employed directly or indirectly in An Post and tens of thousands rely on the Postal service. A large vote base that stretches around the country.

Arguments in favour of the campaign
Arguments that would win support among the general population must be set out and used continually in the public domain. The starting point must be that the financial crisis in An Post is directly linked with the Universal Service Obligations of the company, and that the Staff, Customer and Services of the Company are now been targeted, in a bid to let the Government off the hook as regards their Obligations to the Public.

Suggested letters: Pdf text versions to choose
Press Release:pdf text versions.

PDF of Draft Letters 0.05 Mb

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Comments (17 of 17)

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by John

Mon Oct 25, 2004 11:00

Why should taxpayers bail out your company when it is your own lack of work ethic, restrictive
practices, overmanning etc that have helped land it in the mess in the first place? SDS was a joke with an appalling absenteeism record. It couldn't compete with private sector companies
that were far more efficient. You are unlikely to get what you want as there are now strict EU rules on the amount of subsidies that can be given to state-owned firms. The reality is that snail mail is on the way out. Witness this site. Only the most efficient companies involved in handling snail mail will survive, and An Post is not one of them.

Social Obligation

by Michael Hennigan

Mon Oct 25, 2004 12:01

Agreement on modern practices is important as is the cost of requiring the post to be delivered daily up every boreen in the country-and a delivery may be just a piece of junk mail.

One-off housing is often an issue that gets a public airing but the cost of providing a service such as the post where there is no local property tax system, seldom merits attention.

There must be a huge cost-benefit in using mail boxes. With the phone system available in the remotest of areas, the argument that the postman can look out for older people may only be of relevance in some cases. But shouldn't that be a responsibility of a good standard social service?

has anyone seen the movie the Mailman?

by iosaf

Mon Oct 25, 2004 12:43

Well it's name in spanish is "el cartero", don't know what it is in english. It stars Kevin Costner in a future post apocalyptic "mad max" USA. It opens with him tellingly press-ganged into the slave army of a Klan type organisation led by a suspiciously Scottish (Stuart king) looking authoritiarian monster. All the Klan have the number 8 on their shoulder, are tatooed and _follow orders_ whilst their leader quotes Shakespeare.
Then Costner escapes, and finding his old postman uniform, begins to deliver the mail. The young kids (who can not remember beore the apoclypse) adore him, and begin delivering mail as well, from one mad max village /settlement to the other, all the time running the gauntlet of the Klan militia.
One settlement is "led" by village elder Tom Petty, ("I used to be famous"). In the end Costner wins the war in hand to hand combat with the Klan leader. Everyone is happy, american and free. It's a wonderful movie, complete propaganda and american patriot stuff set in the mountains of Montana, and for some reason gets an airing on Spanish TV almost every three months. Maybe because as it's theme it focuses on one of those "essential services" which we all to often forget express our modernity.
Their civilisation ends because they can't communicate beyond their valley. And at that point the militia (who are very real) take over, in full knowledge that their power will only last as long "normal service is not resumed".

I doubt if An Post dies, that militia types will crawl out from under rocks the length and breadth of Ireland, nor that true patriotic Tom Petty/Kevin Costner types will volunteer, rather I'd make the educated guess that the German BundesPost will buy out An Post and you'll have yellow postboxes, and a more efficient service...without any hint of super Quinn.
:-)

The ISME agenda

by ISMEwatch

Tue Oct 26, 2004 13:48

ISME wants public sector job cuts:
http://www.rte.ie/business/2004/1026/isme.html

Yeah I was going to print the article

by newsforthedeaf

Wed Oct 27, 2004 15:40

for a postman,
but its way too long.

Could those draft letters in the main article
have been posted seperately as comments?

Joe Higgins T.D. challenges Taoiseach over An Post

by Dail report

Thu Oct 28, 2004 19:06

Dáil Éireann 27th October 2004

Joe Higgins (Socialist Party): An Post employs up to 8,000 workers and is a crucial service reaching every corner of this State. Not only is it crucial for business, it also involves the delivery of millions of items of personal mail, as will be demonstrated in the forthcoming Christmas season. In addition, by common consent, An Post has other crucial dimensions involving both the postal service and a social service in many regional towns, villages and remote parts of the country. The importance of this service is underlined by the fact that when these services are threatened, public representatives, including many Government Deputies, raise a ferocious clamour. Happily, in the past, they have had some success in preserving these services. The problem is, however, that the Government will not fund this crucial service.
In 2002, the Flynn report spoke of considerable financial pressures if the proper level of investment was not forthcoming for the postal service, yet An Post was awarded a paltry €12 million to facilitate some post offices transferring services to an agency basis. One of the worst aspects is that An Post's staff and pensioners are now being called upon to subsidise the service in which the Government will not invest. They have not received increases under Sustaining Progress, including workers earning less than €18,000 per annum and SDS workers who face 274 job losses following a unilateral decision.
It has been revealed in the House today that the Government allows millionaires get away without paying a penny of tax. Since 2001, the Government has robbed the elderly in their nursing home beds, yet now the Taoiseach wants to leave low-paid workers in An Post to pay for the crucial services it provides. All in all, the Taoiseach looks like a neo-liberal embodiment of that harsh warlord in the Christian gospel whose motto was, "To those who have, more will be given and from those who have little, even that will be taken away". I am not posing an industrial relations question to the Taoiseach. I am asking him about his overall investment policy for An Post.

Finian McGrath (Independent): Hear, hear.

The Taoiseach: A few years ago, the Flynn report listed several recommendations that are being implemented. If I recall correctly, they were also paid for in terms of staff remuneration and allowances so that the report's recommendations could be undertaken. Over the years, we have taken significant steps to modernise the postal service, including updating its technological automation.
Over the past 18 months, talks have continued between An Post management and trade unions to agree on the full implementation of the Flynn report. I acknowledge that An Post's staff did not receive the payments that were given to everybody else. They did not receive the benchmarking awards as the talks went on because of the company's financial position.
The changes concerning post offices, which involved moving uneconomic entities onto an agency basis, have continued. These discussions are continuing. We all want to see the postal network being maintained but it must be done on an efficient and modern basis. That was the subject of the Flynn report's recommendations, whose implementation is a matter for the management and workers to resolve by agreement.

J. Higgins: Is An Post and its workers now to be treated in the same way as Aer Lingus which is another publicly-owned company that was milked for advantage when it suited the State and successive Governments and then starved of investment at the same time, with workers obliged to carry the burden through sackings and a deteriorating service and the tax-paying public to suffer the effects of cutbacks? What are the principles under which the Government approaches the postal service? Does the Taoiseach agree there is an important social element in An Post's service and that, therefore, it is not simply a question of the profitability of every single unit or area?

The Taoiseach: The answer to the first question is "Yes". If it was not so and that the Government did not see it as a good social service, we would not have continued over the years against considerable competition and opposition, including challenges in Europe over giving An Post large amounts of the social welfare business and any other business we could find, to keep the social element of it and to try to get some kind of economic viability into the service.
I believe the Deputy will acknowledge, as I do, that it is not the fault of An Post workers but that technology has changed the situation for them. They have been losing in excess of 6% on letter post alone based on the last figures I remember when talking to social partners some time ago about the matter. They have also been losing quite substantial parts of their core business in other ways because of texting, e-mailing and other technology. That has undermined to a great degree the viability of the postal service. However, in spite of that in recent years we have invested approximately €100 million in technology infrastructure. Admittedly a large part of that went on the sale of PostGem, its dotcom company, which was re-invested to provide the services. An Post is trading in a difficult position and the Government, board and trade unions need to help it through what is a fundamental change in how people do business in the modern world.

Post early for this Christmas!

by Anthony

Fri Nov 05, 2004 23:29

According to RTE's Business News, the CWU has warned of "total chaos in the run-up to the key Christmas period, if talks between An Post management and unions at the company fail to reach agreement."

AN POST BRANCH CALLS FOR Sustaining Progress TO BE PAID IN FULL

by pc

Mon Nov 08, 2004 21:15

CPSU page content updated

An Post is old hat. Sorry but its true.

by Rick

Tue Nov 09, 2004 21:10

Primitive African tribes used drums to communicate with each other while American Indians used smoke signals.
We Europeans stole the idea of paper from the Chinese and used it as a wrting material.
The domesticated horse and the wagon and then the locamotive along with the sailing ship and the steamer allowed mail to be sent great distances.
Since the end of the 19th century the telegraph allowed electronic communication and the development of the telephone has allowed instant audio communication that began the decline of the postal medium.
Now that we have in the 21st century we have the internet with which to send email.
We have private delivery companies who specialise in parcel deliveries such as DHL and FedEx among others..
An Post is a state run company that is losing money providing a service that technology has largely over taken. It will continue to make a loss into the future as customers vote with their feet.
Naturally when An Post ceases to opporate jobs will be lost but demanding to keep it running for the sake of the employees is absurd and immoral.
Imagine if typewriting companies were subsided by the state even though we live in the age of the PC just so people could remain employed.
Labour should be employed where it is more productive - maybe the guys in An Post could try to get jobs working for internet service providers or other modern communication companies?

'Rick'

Wed Nov 10, 2004 15:08

53 Lorcan Grove, Dublin 9, Eire

"Labour should be employed where it is more productive - maybe the guys in An Post could try to get jobs working for internet service providers or other modern communication companies?" Yeah in crappy jobs performing effectively slave labour for crap wages and non-unionised (workers would get sacked for even daring to join a union). I know people that work in these companies. Perhaps you own one of these internet service providers 'Rick'? Amazing if you put a certain letter in front of your name you get a good description of what you are.

An Post

by spotless mind

Wed Nov 10, 2004 15:46

Do people not realise An Post is alot more than a person bringing letters to your door?
Think what you would lose if that village landmark was taken away. And as for moving into the modern...cant really see my granny sending me an e-mail any time soon...should we leave people behind just for the sake of progress and because a profit cannot be made.....oh thats right, were a nation of capitalists now

quick break everyone pencils they're holding us back?

Wed Nov 10, 2004 17:22

ok eh, so the Postal Service as I understand it has or atleast as this feature is asserting is a public service, does the phone system have the same aspect and if not what the difference...

Change or Go

by Ush

Wed Nov 10, 2004 18:00

An Post has to change to survive bailing out an organisation that is not provding the service effeciently is just a waste of tax payers money. All this argument to bail out the Post Office beacuse it is more than just people delievering letters is rubbish people are just being nostalgic for something that was never that good in the first place.

I personally haven't used An Post in a long time. I do all my bill paying online and letter writing(even to gran it's not that difficult). I don't think i'd actually notice if an post disappeared in the moring, i never got many birthday cards anyway.

'Ush'

Thu Nov 11, 2004 21:44

What is it with the likes of you and 'Rick' that you only care about yourselves, a selfish I'm alright Jack mentality and to hell with everyone else? Even leaving aside for a moment the workers in An Post and their families and dependents what about the elderly and the disabled many of whom don't have family members to care for them. What are they supposed to do if their local post office closes? Starve? Be cut off from the outside world by not being able to post letters and not having their local postman deliver their mail to them especially if they also try to force through scrapping door to door deliveries as well and forcing people to collect their post from post boxes which in many cases down the country would involve a trip of several miles? For many elderly and infirm people the local postman is often the only contact they have with the outside world. Coming back to the workers why should they be punished for the gross mismanagement of the previous An Post management which; and I suppose I have to be very careful here; which to many appears to border on fraud and deception? Remember that we're talking about people's (mostly not well paid) livelihoods and those of their families and dependents here. Why is it 'Ush' that when the likes of you and 'Rick' are not having it your own way you resort to threats like the one that 'Rick' had made earlier on but which was removed? Is it because your agenda is bankrupt?

'pc' you were asking earlier should the phone service be treated the same as An Post (i.e. as a Social Service) and the answer is yes. Again for many of our eldery and infirm; for those that have a phone the phone is often together with the postman and the local post office their only contact with the outside world.

playing devils advocate :)

Thu Nov 11, 2004 22:20

so the post is only for the old?

An Post Update

Wed Nov 17, 2004 14:48

53 Lorcan Grove, Santry, Dublin 9, Eire

Can be obtained by clicking on this link http://www.Ireland.com/newspaper/finance/2004/1117/2582154303BZMAIL.html

Although it just mentions it as a CWU press conference it was in fact organised by the An Post group of unions. btw. pc infirm can also mean people who are disabled and/or in wheelchairs and can be young or old. Should have clarified that more initially:-(

CWU press release re Employee Directors

Sat Nov 20, 2004 21:05

CWU press release re Employee Directors

The full press release is as follows:-

Thursday, 18th November 04

AN POST WORKER DIRECTORS TELL AN POST CHAIRPERSON THEY ARE SEEKING LEGAL ADVICE OVER BASIS OF SDS CLOSURE DECISION

Three worker directors at An Post have told the Communication Workers' Union that they have contacted board chairperson, Ms Margaret Mc Ginley, to inform her that they are seeking independent legal advice concerning the basis of the decision of the Board, taken in July to close the SDS (An Post Parcel Division).

The three directors, Pat Compton, Jerry Condon and Paddy Davoren have jointly written to An Post's chairperson to advise her that "we have decided to seek legal advice in regard to our position following the decision of the July Board meeting to re-integrate the SDS."

The directors have decided on this course of action following an independent review of the financial information that underpinned that SDS closure decision that was commissioned by the CWU and published earlier this week.

The Worker Directors expressed grave concern to the CWU that their duties, responsibilities and rights as directors may have been comprised as a result of disturbing revelations of new information by an independent firm of auditors following their review of the SDS finance and forecast information presented to the board.

Following the new disclosures, the worker directors believe it is incumbent on them to protect their integrity and to ensure that their fiduciary duties were properly discharged. The three men told Ms McGinley "We are taking this course following the release of certain financial information by the Communications Workers Union. This appears to cast doubt on the accuracy of the financial information upon which the Board made its decision and is a matter of serious concern to us."

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