Sarah Elks The Australian June 08, 2014

Big losses, job cuts for Australia Post

ACTING Prime Minister Warren Truss says Australia Post faces a future “crisis in revenue”, in the wake of reports of 900 imminent job cuts.

Australia Post is potentially facing billions of dollars in losses with 900 jobs set to be axed within days.

Australia Post is potentially facing billions of dollars in losses with 900 jobs set to be axed within days.

Fairfax Media reported today that Australia Post’s 32,000 employees would be told of the cuts on Tuesday and that the company also wanted government approval to dump the daily delivery of standard mail.

Finance Minister Mathias Cormann did not rule out privatising the agency.

Nationals leader Mr Truss told ABC TV’s Insiders program that the priority for Australia Post should be to maintain mail services in remote and rural Australia.

“Certainly, Australia Post faces a crisis in the future, in relation to its revenue from the standard letter delivery,” Mr Truss said.

“The reality is we don’t write the letters we once did. People use emails, they don’t send Christmas cards, they send email messages.”

“The bulk mail, particularly in the cities, is now done by private distribution agencies. So there are real issues for Australia Post, as the future goes on.”

“They are doing well in parcel delivery, as a part of internet shopping, but that reps a substantial change in the nature of the business. Other countries have had to face this issue already and there’s no doubt that will be the case in Australia.”

“I think it will be a priority to try and maintain the mail services in remote areas, in regional communities, the pressure is more likely to be felt in the cities.”

Earlier, Mr Cormann told Sky News’ Australian Agenda that he would not rule out the privatisation of Australia Post in the future.

“(But) we don’t think that this is the time to proceed with that sort of privatisation,” Senator Cormann said.

“(However, I’m) not going to rule out what may or may not happen in the future.”

The postal workers’ union has called on Australia Post to offer retraining to any of the 900 workers whose jobs are reportedly on the line due to heavy losses.

It says most of the jobs will go in Melbourne and Sydney, as Australia Post faces losses running into the billions if it continues to offer its failing letters business.

The service has already signalled that everyday home delivery of standard-priced mail could be cut back to two or three times a week, pending approval for government regulation changes.

The Communications, Electrical and Plumbing Union (CEPU) says reforms are unavoidable but the company is still turning a profit. “It’s a terrible blow to lose jobs on this scale, but Australia Post is a big and evolving organisation and we’ll be making the case that new roles should be found for people who want to continue their service,” CEPU postal and telecommunications secretary Jim Metcher said.

“The decline in volume of small letter delivery, Australia Post’s traditional service, does need to be addressed.

“But there is significant growth in new and emerging parts of the business, like parcel delivery.” Comment from Australia Post has been sought.

Additional reporting: AAP

Daily delivery, staff to go in Australia Post crisis | The Australian