An Post wants to cut 1,140 staff from its workforce before the end of 2003, the postal firm said yesterday. The State-owned company currently employs around 14,000.
As the deepening financial crisis was confirmed, An Post projected the "certainty" of a €37 million (£29 million) deficit this year and said losses in 2003 would reach €25 million. It wants to achieve a €17 profit in 2004 after staff leave.
In a memo to all workers yesterday morning, An Post warned it would run out of cash by the end of next year if implementation of a strategic plan agreed in 2000 is not intensified. Failure to deliver that plan has exacerbated the company's funding gap.
It is understood that An Post does not plan compulsory redundancies. The company will seek agreement shortly on a voluntary severance and early retirement package. Some staff will be redeployed.
The Communication Workers' Union, the company's largest union, welcomed the initiative. Its general secretary, Mr Con Scanlon, said: "We're more than happy to engage and always have been. The fact that the company has decided to intensify its efforts is probably proof that their efforts up to now were insufficient."
An Post wants 800 job cuts in its letter post division; 100 at its headquarters in the GPO in Dublin; and 240 at post offices throughout the State.
Chief executive Mr John Hynes said in the memo that the company lost €7 million last year.
He said: "The 2002 budgeted loss includes an operating loss of €16 million and restructuring costs of €21 million.
"The impact on our 2001 cash reserves of €200 million will be dramatic. By 2004 reserves will be almost exhausted.
"Capital expenditure on modernisation over the three years will amount to €125 million and restructuring costs of €51 million will arise in 2002 and 2003."
Mr Hynes said An Post's financial position was worsened by the the Minister for Public Enterprise, Ms O'Rourke's refusal last year to sanction a rise in the price of a stamp.
He said An Post expected an interim stamp price increase to 41 cents from 38 cents to be granted by telecoms regulator Ms Etain Doyle.
"This increase to domestic and to outbound international mail will provide additional revenue in 2002 of €9 million."
Stating that "more significant" long-term increases were being sought, Mr Hynes said an additional €29.5 million in annual postal revenues were required in 2003 and a further €7.8 million in 2004.
Mr Hynes also wanted "major change" in the delivery and collection of post.
On the post office network, forecast to lose €27 million this year and next, Mr Hynes said the Government had told the company to "expedite an orderly and phased" rationalisation of the network. "We will proceed to reduce staffing and associated costs by 10 per cent."
Subsidiaries such as the SDS parcels service do not face staff reductions. An Post is understood to have sought an increase in the rates paid by the Department of Social Welfare for delivering payments to claimants. Such rates have not increased since 1996.
