Dáil Éireann Debate, Thursday - 21 October 2004
5 Mr. Broughan asked the Minister for Communications, Marine and Natural Resources the position with regard to restructuring An Post in view of the company’s recent announcement that it recorded operating losses of €43 million in 2003; and if he will make a statement on the matter. [25838/04]
View answerDeputies will be aware of the precarious financial situation my predecessor outlined in some detail to the House on 23 March with regard to An Post. On top of losses in 2001, the company lost approximately €60 million between 2002 and 2003 and has forecast further losses this year.
Losses on this scale and of this duration are simply unsustainable. It is not in the interests of the company, its employees or customers that the situation remains unchecked. If the company is to return to profitability, it needs to be restructured. If this is to be a success, it is crucial that all stakeholders play a constructive part in this process.
The current industrial relations issues in An Post have been simmering for some time. The problems there are long-standing and deep-seated and it is clear that the solution to the current issues must put the company on a long-term sustainable financial and operational footing. The full scale of the financial problems facing An Post became clear to my Department during the second half of 2002 and to the then management of An Post some time later.
It is important that all stakeholders fully recognise the seriousness of the financial position and the threat this represents to the future of the company. Once the scale of the financial difficulties became clear during 2003 a recovery strategy was approved by the board and presented to my Department. The strategy sets out a roadmap to return An Post to profitability by 2005. It includes significant restructuring and almost 1,700 job losses. However, buy-in from the unions is crucial to agreement and implementation. This has not been an easy process. Change is never easy.
Following the industrial dispute last March, the Labour Relations Commission put forward a framework to resolve the differences between management and unions. Both parties have been engaged in protracted negotiations under the auspices of the Labour Relations Commission. It is expected that these talks will conclude shortly in the Labour Relations Commission and that outstanding issues will be referred to the Labour Court for determination.
It is important that a company such as An Post continues to be a strong player in the Irish postal market and provides quality services to customers. The recovery strategy approved by the board of An Post sets out the basis on which the company, in partnership with the trade unions, can move forward. While my Department is more than willing to assist in any way possible to facilitate an agreement, the responsibility for agreeing and implementing the recovery strategy rests primarily with the board, the management and unions in An Post.
In responding to Question No. 2, the Minister referred to a figure of 8% of paired lines or splitters. I would be grateful if he would investigate that and ask ComReg for the facts. I believe it has them but has not published them.
Does the Minister still receive monthly reports on the progress of An Post? The Minister's predecessor came into this House very startled a few years ago, having discovered the ongoing losses. He initiated a process of receiving monthly board reports and a process of director training. Has the Minister any input into that?
Does the Minister consider it outrageous that An Post's 11,000 employees and its 8,000 pensioners have not got a penny of their increases due under Sustaining Progress? They did not get the 3% increase on 1 November 2003 nor the 2% rise on 1 August 2004. Up to now there is no indication that they will get the 2% increase next December. If not, in terms of increases they will be a cumulative 7% behind the Minister and myself, who get those increases. Is it not outrageous that workers on very modest incomes are treated in this manner by the management of An Post and, perhaps worse, that pensioners who have given up to 40 years of service, former civil servants, are being treated in the same way?
The Minister delivered a brief report on the current discussions. I understand that the national implementation body under the good auspices of Peter Cassells is involved in carrying through consultation between management and the workforce to develop a final transformation through partnership. Does the Minister expect a positive and early result from that so that what most people regard as an era of confrontation imposed by the current management of An Post will end and that recognising the problems in the area, with technology changes, deregulation and so on, we can move towards having a modern postal service?
I share the Deputy's view of what we need in terms of the future of An Post, namely, a modern postal service. That is achievable on a partnership basis by management and workers working together and on the basis that all meet the commitments they make, which is important. I do not want to delve into the discussions taking place on the basis that certain elements which were supposed to be delivered were not delivered. Sustaining Progress is about delivering change and about payments being made to workers on the basis of that change being delivered, as I know from my previous ministerial job. I hope that both sides will live up to their commitments with regard to those agreements. The Labour Relations Commission talks should finish shortly. If there are matters that must then be referred to the Labour Court I believe they will be taken there quickly.
The Minister of State has laid out the position regarding An Post pensioners. I have great sympathy with the pensioners who are out of the system and are not involved with this dispute, yet suffering as a result of it. With goodwill on all sides, that matter could be resolved quickly.
I also share the Deputy's view that it is time to get rid of some of the out-dated and out-moded practices in An Post. We need a company where management and unions work in partnership to provide the best possible service. That is achievable and when we reach the end of the latest round of talks, some of the old practices and attitudes on both sides will have gone and we can move forward.
