TheJournal.ie uses cookies. By continuing to browse this site you are agreeing to our use of cookies. Click here to find out more »
Dublin: 10 °C Wednesday 22 May, 2013

An Post signals price increases, job losses

The group reiterated plans to reduce its workforce by 1,500 employees by 2016.

Image: Photocall Ireland!

AN POST HAS told the postal services regulator that “appropriate price increases” will be necessary to ensure continuity of service over the next five years.

In a submission to ComReg, the postal group outlined its five-year plan to address its financial issues which have arisen because of a significant decline in mail volumes.

The group also reiterated its cost saving proposals to reduce its workforce by the equivalent of 1,500 full-time employees by 2016.

ComReg has agreed that price increases may be required to ensure the provision of a universal postal service but added that it should still be “affordable” for everybody. It said it must make sure that a rise in prices will not impact negatively on already-declining volumes.

An Post said the extent of market decline since 2008 is 23.5 per cent. It predicts this will jump to 30 per cent by the end of 2012.

Arguing for a stamp price increase (which is yet to be given the green light from ComReg), the Communications Workers’ Union noted that Ireland’s postal costs are amongst the lowest in Europe, reflecting the fact that the price of the stamp has not tracked inflation over the years.

“A review of the tariff is long overdue,” said the union.

On the nature of an open market, An Post said that a regime aimed at encouraging as many operators as possible may have the “unintended consequence” of “undermining the survival of more viable and long-established players”.

“Decisions that result in access at multiple points to An Post’s network need to be considered carefully,” it warned.

Commenting on the nature of customer complaints, An Post claimed “considerable time and resources” have been expended on “frivolous and vexatious cases”. It asked the regulator to ‘not entertain’ those which are “manifestly unreasonable”.

ComReg disagreed with the statement, adding that “the evidence does not justify the contention”. The regulator said it was “surprised” that An Post would view the complaints as such.

Submissions were also received from Communications Workers’ Union, DX Network Services Ireland, Nightline and TICo Mail Works ahead of the publication of ComReg’s Postal Strategy Statement for 2012 to 2014.

‘Increased transparency and flexibility’ needed by An Post>

Read next:

Comments (40 Comments)

  • Increase prices because they are losing business ? I’ll have to figure that one out…..

    Reply
  • I’ve been in the online retail business for about 5 years now so I can speak with a little experience in this area. For starters, let’s just stop the bashing for a second and consider a few things:

    1. As has happened with buses and other semi-state services, private operators are cherry picking the most profitable areas, leaving An Post with the responsibility of serving rural Ireland. This is obviously going to have an impact of profitability and costs.

    2. An Post offer a very good rate for shipping up to a kilo to the UK : €7.50 is cheaper than any courier company.

    3. For small items, you can’t beat An Post’s prices. They can be sent to the most obscure places in Ireland for €3 or less.

    4. Yes, Courier companies are better value for larger items. That isn’t An Post’s bread an butter.

    5. For business users sending significant volumes, An Post compete very well for shipments to the UK and Ireland. I’m not at liberty to disclose the rates we get but they are very competitive and yes, they collect as well.

    6. Most importantly, only your postman knows where “Paddy Smith, SomeTown, Co. Wherever” lives. Courier companies HATE these deliveries and we get numerous complaints about them not even showing up.

    Right now, we use An Post for 80% of our outbound mail and in 5 years we’ve had 2 shipments go missing.
    I don’t know what our rates are compared to the rest of Europe but personally I think a bit of a levy on the cherry-pickers wouldn’t be out of order because if An Post can’t subsidise rural services with urban ones, what other choice do they have?

    Reply
  • jrbmc 31/10/12 #

    Oh of course sure why not ! Everybody’s doing it and just in time for Christmas too…… 4.5m people by an average of 10 cards per person let’s say and increasing the stamp by 10c …. Well that should cover all the bonuses for this year !!!

    Reply
    • Oh they’re p*ssed off at getting complaints too… typical civil service

      Reply
    • Charlie we are NOT civil servants, just ordinary PAYE workers, no benchmarking, no Croke Park. Legitimate complaints are fair enough but it’s the stupid ones that cause the trouble. Let me give you an example I deliver to a rural area a guy recently complained that he had moved house and he was not getting his post forwarded on to him. There were 2 problems there no. 1 he had told no one that he had moved and no. 2 he hadn’t put in a redirection. Another time someone complained that his parcel was damaged, the only problem was that the tracking number showed that it was a courier company delivered it.

      Reply
    • You dont work for a state body?…. I didnt know An Post was privatised….. Civil Servant you are. Its easy to tell the difference, ordinary PAYE workers dont get the pensions you get… Oh and I agree I am to some degree stupid. Stupid because its me and every other private sector bozo that susidies those pensions. The total tax take paid by An Post workers does not even cover the pensions being paid out of it. In fact the entire tax take only covers 80%. So yes I am stupid. Stupid enough with my fellow private sector workers who has to make up your shortfall while you get to retire on easy street….

      Reply
    • Oh and stop complaining about your customers… without them you’d have no job… Oh wait your in the public sector so I you’ll have a job regardless… Another difference between the private and public sectors…. We’re getting tired of carrying your sorry A$$

      Reply
    • Check your facts Charlie back in the P&T days staff were civil servants, not anymore since An Post came into existence. Civil servants pay a lower rate of PRSI we pay full rate, civil servants aren’t entitled to state pensions, we are, we also pay into a pension. Staff don’t have any guarantee of jobs in fact the majority who were taken on in recent years were taken on on fixed term contracts. Also if you bothered to read my comment you would I wasn’t complaining about my customers. I was pointing out some of the stupid complaints that go in. How can I be at fault for a damaged parcel delivered by a competitor?

      Reply
    • Oh ya by the way Charlie An Post isn’t a state body, it’s a semi-state commercial company.

      Reply
    • Charlie just to let you know,I am a postman in my fifties,I have been a postman thirty years,if I reach retirment age I will get my full pension ie 50% of my basic pay which would be 276 euros a week.I will not be entitled to any money from the State despite paying PRSI for over 40 years,it’s hardly a fat pension.There has been a large drop off in mail volumes but the office I work in has seen a 25% reduction in staff in the last 5 years.

      Reply
  • Of course maybe it’s to pay for the new fleet of white An Post vans throughout the country. Interesting to note that the previous generation of 06 regs, with their An Post stickers removed, are visible everywhere. (Next time you see an unmarked green van, take a close look at the side panel, and you will see the residual print of the An Post livery.) People bought them obviously, because they need vans for their day to day businesses.

    My point is that if they’re good enough for private concerns to invest in for a few years worth of transportation, then surely they were good enough for An Post to keep using for a bit longer, and perhaps An Post wouldn’t require us to pay more for their “services” then.

    Reply
    • It’s not hard to see why An Post are in trouble. They need to restructure their service and make sure it works. I can send a parcel of up to 20kg anywhere in ireland for 6.50 overnight with full tracking via courier, with no restrictions on size or shape. An post on the other hand charge a similar amount for up to 1KG with a sliding scale upward for weights above 1KG. Tracking works occasionally.
      For UK and other foreign services, prices are astronomical and even though they offer a “full” tracking service, for which you pay a premium, this tracking is not available outside the 32 counties. So what’s the point in the tracking service?
      There’s a flat rate available for the UK and Europe via courier of 15.00 for up to 20KG parcels as well with full tracking. Couriers are private concerns with Management and staff that give a damn and as such they simply work.
      An Post are not within an asses roar of being able to compete with these private couriers on either service or price. When they do restructure and are able to compete they will be in a different position, but until then, I’ll avoid the queues in Post Offices, enjoy a reliable service at a cheaper price and just wait on the courier to call and collect my goods for dispatch.

      Reply
    • ken-d 31/10/12 #

      All the fleet is leased,and it’s the leasing company that sell them after a period of time,times do change but not always for the better

      Reply
    • I did not know the fleet was leased, but the obvious solution is for An Post to either extend the lease term or to do a buy-back of what are obviously good, roadworthy and valuable vans. I’m sure we have a few mechanics in our very many local authorities who have gotten really good at Sudoku.

      Reply
    • As an employer An Post have a duty of care to their employees, the post vans put up huge mileage over a few years and by not replacing them they would leave htemselves wide open for liability in the event of a crash with a van with substantial mileage. They would also be coming into the range where they become more expensive to maintain to a proper standard ( remember that a van constitutes a workplace and therefore the driver has a right to things like heaters working, etc ). These are worries not attached to a private individual buying when sold on.

      Reply
    • I think it’s likely that many of those who purchased the ex-An Post vans did so for the very purposes of using them as work vehicles. They would clearly be bound by the same requirement for safe working environments as An Post workers, so I don’t accept that argument. Equally, if the cost of ownership was likely to exceed the benefits of same, they would now be off the road and not presumably in the hands of private business owners.

      Or is it, as is more likely, that An Post workers want the shinier, newer, cleaner, spanglier vans and refuse to drive something which doesn’t have a 6-CD changer and MP3 port to keep their kids amused when they do the school run “on the way” to and from work?

      Maybe I’m just too cynical…!

      Reply
    • If somebody uses the van themselves they have no duty of care as it is their own van. Lots of these vans turn up round where I live and they are not used by companies, they are used by people who need a van to throw stuff in the back, not some budding entrepreneur. If they were being used by businesses they would have company names on the side.

      Reply
  • Its the narrow minds of people who also forget that the tax payer will also foot the bill for their long term unemployment social welfare payments as I cant see them walking in to another job someday soon.

    Reply
  • Are an post not making money out of their AIB affiliation, and in processing social welfare payments? not to mention the tenner they get from every Tv licence.
    I imagine the letter business must be suffering very few people send letters outside business requirements its slow and extremely expensive. putting the price up will encourage more people to dump it. (i had to send a letter 12 miles the other week, took 4days to get there).
    The parcel business in Ireland should be absolutely booming the amount of people buying online is increasing by the day, and an post is the moat expensive to deal with. if it doesn’t change its ways it’ll soon get eaten.
    ps their also the reason we don’t have post codes cause they know their f**ked when we do.

    Reply
    • Do they run the national lottery also?

      Reply
    • Your right too john I forgot about that ! Maybe they know their gonna be outbid for the next one, so firmly setting their eyes on plan b…

      Reply
    • And yet the Royal Mail are hiring more staff as online sales have boosted their business. When the Royal Mail admits to making money, you know there’s money to be made… TBH it’s a pain in the hole going to the post office these days. Waiting in line for 45 minutes to get a fecking stamp because the machine’s broken and no-one in the shops around town has any. ‘Tis no wonder people go with another option!

      Reply
    • Reason we don’t have postcodes is because comreg wanted An Post to pay for implementing them. Why should An Post pay, it would only be of benefit to the competition. If DHL, UPS etc want postcodes let them pay for the systems needed to bring them in.

      Reply
    • Surely a logical step for society would be for An Post, Private Couriers, GPS Companies, Taxi Unions etc to come together to fund a postcode system.

      The efficiency of these services would sky-rocket but I suppose it is too much to ask for the end customer to be satisfied.

      Reply
  • A traditions postal service will always be needed. I know there are some people who seem to think that we live in a world where everything can be done through their showy ipad or tablet thingy. They almost think they can beam things offline into their homes star trek style… ” post is so loike last year”. Parcels, large documents etc all need to be manually delivered. I do not work for An Post but do notice that in comparison with UK and Germany costs here are less than those countries. Also I frequently had to send college work to UK last year for assessment. They always arrived on time no bother. So the people who complain about it being slow are those whose lives are completely dominated to the brink of obsession by a hand held device.

    Reply
  • Am I the only one who always though that An Post was one of the better semi-states that we have – likely due to competition. I have never had a problem losing mail or with delays and I find mailing a letter is generally very cheap. I often receive bills and letters that are dated from the previous day. I use ebay nearly weekly buying vinyl from the UK and Ireland and have never had an issue with costs or time.

    Here’s a table that shows that we are about average compared to worldwide rates.
    http://online.wsj.com/article/SB10001424052702304432704577348081675144936.html

    Reply
  • And there was me thinking An Post is making a fortune out of postage for multiple threatening letters regarding the household charge.

    Stop discounting postage to big business. They only send bills anyway.

    ComReg just do what they are told by An Post.

    Reply
  • As someone who buys and sells things now and again on Ebay the cost of posting something here is a disgrace. We are up there as one of the most expensive countries in the world to send something by mail. No wonder they are in trouble.

    Reply
  • @ Declan. Are you in the same country as the rest of us? Takes a minimum of two days to send a letter to the same town here – has to go to a sorting office two counties away first and then come back! Countless times things don’t arrive on time. The “service” is a pile of useless ****!

    Reply
  • Orly 01/11/12 #

    Only a few more years until we perfect teleportation and this stupid service, and public transport, will both be obsolete. :p

    Reply
  • Nothing but slow, unreliable and overpriced service. Can’t say I’d be sorry to see it go altogether. Can’t help but wonder who’s going to pick up redundancies bill…

    Reply
    • Oh I bet you know who’s footing that bill for sure…!

      Reply
    • its finally happening as the world moves with technology email is becoming more popular faster and more reliable not to mention the significant cost difference

      Reply
    • what are you talking about. ?? you post something today, it’s there tomorrow. in 35 years posting letters, not one has ever been lost. they can’t make other postal services such as the usps or uk post office function quicker. I think they do a great job. that paybill site is excellent also, I have been using it for years.

      Reply
    • iv had a good few letters going missing..it is a unreliable and expensive method of contact..since I have moved to email for everything possible bar a few that I can’t.it is easy and always accessible for reference..move with the Times or they will pass you out..my postman says he is delivering less and less post…
      the new vans were more than likely needed as repair costs were getting higher it makes sence to renew the fleet

      Reply
    • Irish Commentators Welcomed British Banks like Bank of Scotland Halifax who undermined our banking system with the two edged sword of unregulated competition caused a property bubble and have left. Food retailing and Postal services next?

      Reply
    • @tomnewnewman is a commentator not someone covering footy matches etc…?how can you blame English banks it was our banks that are shafting us

      Reply
    • @vinnie – a commentator is somebody who comments, like people who right comment pieces and editorials for newspapers, magazines and other media outlets.

      Reply
    • Danny & Professor it will be the tax payer who will pick up the bill for any statutory redundancy payment, the same as it would be for any other company. There seems to be a misconception out there that An Post receives money from the state but this is not the case. I am a postman and I am not covered by any Croke Park deal nor did I get anything out of benchmarking. An Post employees provide a public service but we are not public servants, back in the days of the P&T staff were public servants but not anymore.

      Reply

Add New Comment