PRESS RELEASE: CWU denounces ComReg €12m fine threat against An Post

Thursday, 9 February 2012 – CWU General Secretary, Steve Fitzpatrick, has today described ComReg’s threat of a €12m fine against An Post as "an outrageous and wasteful attack by an unaccountable quango against An Post and the Irish postal service that will result in the loss of thousands of jobs."

Responding to this afternoon’s announcement from the communications regulator, ComReg, that it has initiated proceedings against An Post and is seeking to impose a fine of €12m on the national postal operator, Steve Fitzpatrick said:

"The legal action being taken by ComReg is totally unjustified in circumstances where the company, working with the CWU, has made huge investments in improving the quality of service which has led to year-on-year improvements in the service levels which are now very close to meeting the target of 94% next day deliveries."

Mr. Fitzpatrick stated: "As well as providing a vital public service throughout the country, An Post is a major employer with over 9,000 staff and this action by ComReg, aside from being a high profile to attempt to justify its own existence, will fatally undermine the viability of rural post and put thousands of jobs at risk."

He said the company is already struggling to make a profit as a result of a serious collapse in mail volumes. He said: "It is truly incredible that the Regulator would decide that now is the time to impose a fine, without warning, that is several multiples of the profits made by the company last year. This is a wasteful and unnecessary distraction to the company and its workforce. It really does beggar belief!"

The CWU General Secretary went on to add: "It is worth noting that ComReg will not be liable for the costs of this legal action even if they lose. Whatever the outcome, An Post will be stuck with a massive legal bill."

He added: "An Post does not receive any state support and the huge legal bills that will result will also lead to a further loss of postal jobs up and down the country."

Mr. Fitzpatrick said: "Minister Pat Rabbitte has to ask questions of this unaccountable quango: Is this legal action in the best interest of the country and the communities served by post men and women every day?"

He said it is deeply disappointing that former An Post managers would be a party to an action by ComReg that will gravely damage their former employer and former colleagues in circumstances where current service levels are way above those that pertained when they worked for the company.”

He said: "An Post is an internationally respected postal service provider and a valued part of the fabric of our community.  The company delivers a vital public service at one of the most competitive levels in Europe."

Mr. Fitzpatrick concluded by saying: "The Regulator refuses to share information with An Post on where its service levels are deemed not to be meeting its expectations. Furthermore, ComReg samples just 30% of postal deliveries and completely ignores bulk mail which now accounts for most of An Post's business mail services."

"It is a bizarre situation that ComReg, at huge expense, supposedly measures the service levels of An Post, seemingly determines that the company is not performing well enough, but then refuses to tell An Post where its systems need to be improved! It’s as if a teacher has checked a pupil’s spelling but refuses to tell him what mistakes have been made. This is not the way to do things better."

He said: "If ComReg wants to play a constructive role in our communications infrastructure and help to improve the postal service, then it should start by sharing this kind of information rather than seeking to impose million euro fines on our national service provider."

Ends

Steve Fitzpatrick, General Secretary of the CWU is available for interview. For reference and interviews contact:

Jim Devlin
087 2631057