Major job cuts needed -- An Post
AN POST has reiterated the need for major jobs cuts and a hike in prices within the next three years.
Last year it announced that almost 2,000 jobs would be shed by the end of 2015 as losses at the company soared to €25m in 2010.
In correspondence to the communications watchdog ComReg, the commercial semi-state again gave details of its jobs cuts plan.
It also warned that boosting competition in the postal market could end up threatening the survival of long-established companies.
The correspondence formed An Post's response to ComReg as it devised its Draft Postal Strategy Statement for 2012 to 2014.
The company also reiterated the need for price increases. In April it was announced that a price of a stamp may increase from the standard 55c rate. It is expected the price would go up by 10c. ComReg has yet to decide on the proposed price hike.
ComReg published its strategy statement for the postal sector to 2014 yesterday and stated that it would decide on whether to impose a price cap on other services offered by An Post by the end of 2013. Consultation will begin next year.
Meanwhile An Post said that opening up the postal sector to several companies might be designed to boost consumer choice, but may have "unintended consequences".
"It may have the perverse effect of undermining the survival of more viable and long established players."
ComReg chair Alex Chisholm said the full opening of the Irish postal sector to competition comes at a time of significant change in the sector.
"For postal services to stay competitive as a medium of communication, postal service providers must be cost effective, innovative, and continually aligning and re-aligning their postal services to postal users' needs," Mr Chisholm said.