Australia Post has announced major job cuts
as the decline in its traditional letter delivery service continues to
accelerate.
The ABC reported earlier today that 1,900 voluntary
redundancies will be offered over the next three years from metropolitan
centres.
The redundancies come as Australia Post
confirmed losses in its mail delivery business is approaching $500 million this
financial year.
With the volume of ordinary mail expected to
plunge by more than ten percent, Australia Post has warned it will report its
first company wide financial loss in more than 30 years.
The disruption created by the Internet and
other online messaging services has taken losses at Australia Post to more than
$1.5 billion over the past five years.
Australia Post managing director Ahmed Fahour
admits the decline in the mail delivery service is now critical.
"We have reached the tipping point that
we have been warning about where, without reform, the business becomes
unsustainable," Mr Fahour said this morning.
"We welcomed the federal government's
decision to support reform so we can manage the mail service losses, meet the
changing needs of our customers and continue to invest in growing parts of our
business such as parcels and trusted services."
In announcing the voluntary redundancies, Mr
Fahour confirmed there would be no change to postal deliveries five days a
week.
However, earlier this year Mr Fahour flagged
the possibility of a two-speed postage service for its loss making letter
deliveries business so it can focus on the lucrative opportunities in freight
and parcel deliveries.
Mr Fahour said there would be no forced redundancies caused by the overhaul of the letters business and the focus
would be on retraining and deployment.
"While reforming our business we have
made a number of commitments to protect our employees, our Post Offices and the
community," Mr Fahour said.
Under the proposals, Mr Fahour said he would
protest Australia Post's national network of more than four thousand post
offices.
He said there would be financial support for
licensed post offices and community postal agencies which make up 80 percent
of the business.
Australia Post says since October 2013, more
than four thousand staff have been transitioned into different roles with an
emphasis on its fast growing parcels delivery business.
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