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: Pdftext versions to choose
Press Release:pdftext versions.

PDF of Draft Letters 0.05 Mb