As a commercial company, the challenge ahead for An Post is to develop a strategy that satisfies the needs of existing customers, while attracting new customers. In addition, further change is required if the postal services of An Post are to adapt to the modern business environment and to continue to offer a top class nationwide delivery service to the customer into the future. With this in mind, the board and management of An Post has presented a recovery plan, incorporating details of a proposed new collection and delivery service, which I believe is vital to the re-establishment of the company on a more secure financial footing. The plan sets out the way forward for the company. Adoption of the restructuring that, as envisaged by the plan, delivers real change is the only way that An Post workers can look forward to receiving pay increases in line with other sectors. I have continuously emphasised the need for all stakeholders in the company to work together in a partnership approach and to utilise the industrial relations mechanisms of the State, where necessary, to agree and implement the recovery strategy to return the company to financial stability and prepare for the challenges ahead.
In order to progress the change agenda, an exhaustive process of negotiation between An Post management and An Post trades unions, under the auspices of the Labour Relations Commission and then the Labour Court, was entered into. This process was recently concluded with the court's recommendation that the company accept the proposals as set out by An Post management in relation to the recovery strategy and specifically the proposed new collection and delivery service. The court also recommended that acceptance of the productivity agreement was contingent on the balance of increases being paid out under the Sustaining Progress agreement.
It is my understanding, however, that on 5 September 2005, the Labour Court's recommendations were rejected by the main union in An Post, the CWU, Communications Workers Union. I understand that, following a special delegate conference, the union has now decided to ballot its membership for industrial action up to and including strike action. The ballot will be concluded by Friday, 21 October.
I would like to echo the Taoiseach's comments in the Chamber last week and restate that industrial action in An Post would only deepen the problems and put jobs and living standards of the company's employees at risk and I, too, urge members of the CWU to consider very carefully the options before them.
I have met with management and the unions and have emphasised the importance of an early start to the company's modernisation and that both sides must engage directly in order to resolve long-standing and deep-seated problems besetting the company.
