I am fully aware of the decision taken by the board of An Post to re-integrate SDS, the parcels and courier division of the company, back into An Post.
My Department has been in contact with the management of An Post about this matter. In recent years SDS has been consistently operating on a loss making basis. In 2003, as a result of the worsening financial and commercial circumstances, a fundamental review of the operation was undertaken by management. Subsequent to this review a recovery plan was developed in conjunction with the Communications Workers' Union.
Despite the implementation of changes associated with the recovery plan, which were intended to make SDS competitive by providing it with a more flexible cost base and increased productivity levels, SDS continued to incur serious losses.
Following consideration of the issues, including potential losses of €10 million in 2004, the board decided at its meeting in July on the closure and reintegration of SDS into the mails business. A plan for the closure and reintegration of SDS, which involves the loss of 270 jobs on a voluntary basis, is now being implemented with all stakeholders being consulted on the arrangements to be put in place.
My Department received correspondence from the general secretary of the Irish Congress of Trade Unions in July this year setting out concerns regarding SDS and making reference to the partnership process. In response, my predecessor met with representatives from ICTU and CWU in August this year to discuss their concerns regarding SDS and the reintegration process.
It is my understanding that following a request from the ICTU, the National Implementation Body, NIB, held a hearing to determine whether the company breached the partnership terms of Sustaining Progress in making its decision to reintegrate SDS. The National Implementation Body, as part of its determination proposed that an independent facilitator be agreed to share the financial details and review a process for information sharing. Mr. Peter Cassells has been appointed as facilitator and I understand this process is up and running.
