GSP 23-20 Mails & Parcels
27/July/2020
Description
I wish to update you regarding a number of issues associated with the Mails & Parcels business at An Post and potential impact on our members.
Impact of COVID-19
The COVID-19 pandemic has changed, almost overnight, the world we live in, requiring all to adapt to a “new normal” in every aspect of our lives. Working collaboratively with An Post management, the Union has ensured necessary health & safety protections are in place, thereby enabling continuation of services to customers, assisting the vulnerable and, of course, securing pay and employment of our members. The result being, our members have contributed significantly to the elevation of the An Post brand to market leader and the gesture by the Company of the COVID-19 bonus, which members will receive this week, is well deserved.
Recognising that the Mails & Parcels business and staff have operated at PEAK/Xmas levels since mid-March, there are some key changes that will impact on the future direction of the Company. The provision of PPE will cost €6 million this year, which will be a requirement for some years to come. Letter mail decline has accelerated to a 20% drop year to date, with a corresponding 100% increase in parcels & packets during the same period. The change in the profile of mail will require a re-examination of the Company pricing structure, right sizing of the delivery operation and investment in the necessary infrastructure to transform the letters operation to a parcel & packet based one, in order to secure the future of the business. The Union has provided the space and time to allow a focus on the immediate requirements by pausing the pay discussions until September, at which point we can assess the more long-term impact of COVID-19. This will influence future pay agreements and the level of increase our members will accept for this year.
What is clear is that the decision by the CWU to push the Company into the packets/parcels market has proven to be the correct strategy and has saved the business and the associated employment as the traditional work collapsed.
Immediate Priority Issues
The growth and development of the mails business requires major investment, which will see a number of projects be completed in time for the PEAK period. Completion of the second automation facility at the DMC is on track to go live in October 2020. The much promised and very late delivery of the handheld scanners are, the Company confirms, targeted to be in place at the end of October 2020. Trials and the ongoing preparation for this will commence shortly. The Union has identified a number of premises that are not fit for purpose, which requires the Company’s immediate attention if services are to be maintained.
Commercial Actions
Several commercial actions are being taken by the Company to address the financial hemorrhage primarily associated with the letter decline. These include a stimulus program for SMEs, stamp promotion, actively targeting new parcel business, and a pricing review of existing parcel products and services. The price increase, deferred from last March, will be applied in the Autumn. The Company has conducted a review of its direct mail products and has proposed the establishment of a joint working group to examine the publicity post service.
Realignment of DSUs
In its drive to increase additional capacity in the mail’s delivery area, the Company has decided to ‘vehicilise’ cycle routes at another 30 Delivery Service Units nationwide. The locations and target go live dates are outlined in the attachment to this circular. Essentially, the change converts an existing 642 cycle routes to 508 CMVs and 134 Trikes. Implementation of these changes in three phases is targeted to be in place in advance of the PEAK period. Local engagement will commence immediately on the very same basis as applied previously. In this regard it should be understood the Company cannot advance proposals below the agreed established DSU staffing baseline. Furthermore the Company must address the staff impact issues and Branches will have the assistance of the CWU Regional Officers, who will oversee this project in their area. Discussions in Dublin have already commenced with the Cork offices dealt with in the context of consolidation of offices, as set out below.
Cork Super DSU
Following the closure of the Cork Mails Centre, the Company has decided to retain the Little Island premises and to develop a Super Delivery Office. The plan, details of which will be shared with the Cork Branches on Tuesday 28th July 2020, envisages the consolidation of a number of DSUs on a phased basis. The immediate focus is to design and consolidate North & South City’s most optimal routes, with the existing Little Island DSU and Cobh to ensure the changes are in place for the PEAK period. The changes will encompass the conversion of cycle posts to van/trike on a once over the ground basis.
An Post Strategic Plan: Prio-Eco Project
The Postal/Courier Executive recently received a presentation by An Post management on its more long-term plans for the transformation of the delivery network. Although the Company has been developing this for some time, from the Union’s perspective, it is very much at first base and will require very careful and detailed examination. The Executive will review the content of the presentation at its next meeting and further updates will be provided in due course.
Please bring the contents of this circular to the attention of members and ensure cooperation with the progression of the changes as outlined above.