I am pleased to say that the Labour Relations Commission has facilitated an agreement between An Post and the Communications Workers' Union on appropriate arrangements to deal with the Christmas post. Members of the CWU have voted to renew a general mandate for strike action. Rather than resorting to any form of industrial action, I urge members of the union to work through the established industrial relations machinery to resolve areas of disagreement between management and unions. An Post customers are entitled to a postal service, especially at Christmas and no disruption of postal deliveries should take place at this time of the year.
An exhaustive process of negotiation between An Post and the CWU has taken place throughout the year on retaining postal distribution and delivery, under the auspices of the Labour Relations Commission. While some progress has been made, there are still many points of disagreement between company management and the union. The union is currently balloting members on proposals that emerged from the negotiations.
The critically important objective of restructuring the company remains an imperative. All parties have agreed that change in the company is necessary if it is to be financially viable and positioned to meet the competitive challenges that can be expected to intensify during the months and years ahead. Management and unions can only achieve the restoration of financial and operational stability by adopting a partnership approach using the services of the State's industrial relations machinery. Unfortunately, I cannot wave a magic wand to provide an easy solution to the difficulties in An Post.
With regard to the future of the postal network, it is important to note that the sector has changed significantly in recent years with liberalisation of the European postal market and with operators moving from national into international markets. In the development of any new services, the key focus for An Post will be to offer a range of quality products and services which meet consumer demands. The future of An Post future will only be guaranteed by adapting to the increasingly competitive environment in which it operates.
Additional information not given on the floor of the House.
The post office network has been the subject of a number of studies and reviews in recent years. Many of the recommendations in these reviews have been implemented to win new business, including extra banking and new utility business. The post office network currently has a high footfall, a recognised brand name, and a countrywide retail network. There is scope to build on the range of services already provided and to obtain new business for the network building on existing strengths. I have asked the postmasters' union and An Post to work in partnership with a view to securing existing business and to pursuing new business opportunities as they arise. The parcels market in Ireland is now fully liberalised with some of the biggest postal operators in the world providing high quality services and international reach to Irish business. The competitive nature of the market provides a range of services which largely meet consumer and business needs. The letters market has been partially liberalised, with further EU liberalisation proposals likely to come on stream in the future. Strong international players, currently operating in the parcels sector, are likely to look for opportunities in the letters market. Furthermore, mail is facing a strong challenge from electronic substitution.
An Post is equipped to deal with these challenges given its modern infrastructure, well trained staff and established nation-wide reach. Restructuring of the company is a must, together with all stakeholders working together in a partnership approach, if the challenges facing the sector are to be overcome.
