An Post has told its unions it cannot afford to pay the first phase of the wage increases agreed under the national pay agreement Sustaining Progress.
The company told staff representatives of its position at a meeting of its Joint Conciliation Council yesterday, following a formal claim from the unions.
An Post is currently forecasting operating losses of €46m and €31m for 2003 and 2004 respectively. Earlier this month chief executive Donal Curtin told an Oireachtas Committee he hoped major work changes, including 1,500 staff reductions planned, could be introduced by agreement with the trade unions. Talks on this are continuing.
Mr Curtin said today that the 2004 figure was based on the assumption that the change programme would be agreed with unions and implemented in mid-2004. The budget for 2004 also assumed that the national wage agreement would be paid.
Mr Curtin said the 2004 loss would worsen to €37m if savings expected under the change programme were not achieved.
He added that an operating profit of €5m projected for 2005 would be turned into a loss of €41m if a restructuring were not implemented.
Mr Curtin said An Post wanted to pay the terms of Sustaining Progress but could do so only if it had a clear path towards achieving financial stability.
