In an open and highly competitive market, it is bizarre that the failure of a badly run business is being blamed on one of its competitors that happens to manage their business well
Sir, – The analysis of the underlying reasons for the collapse of the Fastway delivery service as presented in The Irish Times (Did competition from An Post kill Fastway Couriers? Business, November 5th) and other news organisations, is way too convenient and completely inaccurate.
What is accurate is the significant disruption the collapse is causing to consumers and the businesses that have depended on it, and the appalling treatment of 300 Fastway workers and 700 subcontractor and franchisee delivery contractors. However, the scapegoating of An Post and the charges being made against it lack all credibility.
The Government needs to step in now to ensure that the redundancy and benefits which the workers are entitled to are paid immediately. The receivers must also prioritise the livelihoods of subcontractors and franchisees, including the transfer of their services to other delivery operators to help take up the vacuum left by Fastway.
An Post is a commercial company. It doesn’t receive any subvention from the State. It holds the public licence (Universal Service Obligation) to deliver letter mail, but it must meet stringent service standards in return.
Government funding for the post office network does not go to An Post, but rather the network of post offices run by individual postmasters as independent private contractors providing an essential community service in the delivery of government services. The mail and parcels business does not benefit from this or any of its supports.
There is no monopoly in the postal/courier market. This market was liberalised in 2016. It is a highly competitive, low-margin market. Fastway was not just competing with An Post. It was competing against global companies with significant investment behind them, including DPD, UPS, DHL and Amazon, to name just four of the main players. These companies have massive international networks. It is also worth noting that, apart from Amazon which also benefits from state business and supports, these companies have unionised workforces.
Delivery services must be paid for. Customers and consumers are demanding higher-quality services, including very rapid delivery and live tracking, plus convenient returns. Customers want these services, yet some operators are participating in a race to the bottom, including Fastway.
In an open and highly competitive market, it is bizarre that the failure of a badly run business is being blamed on one of its competitors that happens to manage its business well. Fastway workers are paying the price for a flawed model, with its owners overpaying in the expectation that business would continue at Covid-19 levels, which was never realistic.
A trusted, reliable, well-invested postal delivery service is a cornerstone of our economy. It is also a cohesive support for communities and businesses up and down the country. This is the service that An Post provides with a shared focus across its workers and management. – Yours, etc,
Seán McDonagh
General Secretary
Communications Workers’ Union
North Circular Road
Dublin 1
