Australia Post, union strike deal, second-day letter delivery extended

Australia Post will extend second-day letter delivery until mid-2021, but no jobs will be cut under a fresh deal with the posties union.

Australia Post is extending “every second day” delivery.

Australia Post will now deliver letters in metro areas every second day well into next year, under a deal struck between the government-owned corporation and its workers’ union to better manage the impact of the COVID-19 pandemic on postal flows.

But in a win for the unions, the memorandum of understanding signed between the Communications, Electrical and Plumbing Union and Australia Post will see no forced redundancies before August 9, 2021.

The planned change to Australia Post’s delivery system will see letters in metro areas delivered every second day until June 30, 2021, with posties previously on daily runs redeployed to deliver parcels, which have surged during the coronavirus pandemic, exacerbating the continued decline of letter delivery as part of the company’s revenue mix.

In 2019 revenue from postal and parcel services grew by 7.7 per cent to $4.8bn while revenue from letter delivery declined 8.9 per cent to just over $2.2bn, with the division losing just over $190m.

In the first half of the last financial year letters revenue declined a further 9 per cent, with the division losing $87m.

The CEPU had previously strongly opposed the proposed changes to the letters delivery model, saying Australia Post’s management was using the pandemic as an excuse to slash up to 2000 jobs, despite an ongoing Senate inquiry into the future of the Australia Post revealing that the corporation’s revenue surging on the back of increased parcel deliveries in March and April.

Under the previous arrangement, four traditional runs each staffed by a postie would see two posties take two runs each, one postie assigned to parcel delivery, with the fourth position axed, according to the CEPU.

But on Tuesday, CEPU National President Shane Murphy said the new agreement would protect the jobs of the more than 33,000 postal employee workers, with one in four jobs no longer being cut from the delivery model.

“This agreement will ensure no posties are removed from the delivery employment mix – something we have fought hard for – protecting jobs and improving parcel delivery services to our communities,” he said.

“We are also pleased to announce that our members employed in roles directly supporting the processing and transportation of that mail product in line with temporary delivery standards will also have their jobs protected.”

Australia Post CEO Christine Holgate said the changes were an important step towards future-proofing postal delivery.

“We are pleased to reach this agreement with the union to provide certainty to our workers as we navigate the effects of COVID-19 on our business,” she said.

“No posties will be removed from the delivery service and we have been encouraged by the strong response from people wanting to move across to parcel delivery.

“We look forward to continue to collaborate with the union as we implement the alternating letter deliveries in metropolitan areas and we welcome the CEPU’s recognition of the importance of this temporary change is to help Australia Post safeguard the business.”

Opposition spokeswoman for communications Michelle Rowland and opposition spokesman industrial relations Tony Burke deemed the deal a “surrender” by the government and communications minister Paul Fletcher.

“Labor welcomes today’s surrender by the Morrison government on the jobs and wages of Australia Post workers, only a day before a Senate Inquiry was due to commence,” they said.

“Minister Fletcher thought he could use COVID-19 as a backdoor excuse to cut jobs and reduce take home pay at Australia Post, and this agreement confirms the Liberals were up to no good.

“The Labor Party will always stand with working people, and we will act responsibility and forcefully to protect jobs and wages when they come under unfair attack.”

Frontline postal workers will be paid a one per cent thankyou bonus under the agreement — but all workers will be unable to engage in industrial action during its term.

Australia Post, which is wholly owned by the federal government, delivered a profit before tax of $41.1m in 2019 against revenue of $6.99bn.

The Senate inquiry into the future of Australia Post’s service delivery will continue on Wednesday.