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The union representing Australia Post workers has warned the public to be wary of claims that the service is in crisis in the lead up to today’s release of a report examining the future of Australia Post.

The Communication Workers Union (CWU) has reminded Australians that last year Australia Post made an after tax profit of $312 million and paid the Federal Government a $244 million dividend. “This is not a company in crisis” said Assistant National Secretary Martin O’Nea

“There were more than 4.5 billion letters delivered last year. That is around 87 million letters a week or 17 million letters a day,” Mr O’Nea said.

“After delivering the mail five days a week to every house and business in Australia, they still made an after tax profit of $312 million and returned a dividend of $244 million to the federal government.

Mr O’Nea went on to say that the international experience is that the decline in mail volumes is decreasing and is expected to level out at around 3.8% a year1.

“Media comments by the CEO of Australia Post that mail volumes will fall by 8% a year for the next decade just aren’t credible when compared to international experience. A study by Pricewaterhouse Coopers for the Royal Mail in the UK is forecasting a 4.9% decline that is tipped to slow to 3.8% after 2018,” he said.

Mr O’Nea said that Australia Post was well placed to use its extensive retail network and daily delivery service to secure the majority of the growth in small parcel deliveries flowing from the rapid increase in online shopping which last year accounted for $15.25 Billion dollars yet is still only some 6% of all retail spending.

“This decline will be more than taken up by the rapid growth in online shopping and the demand it creates for small parcel deliveries. Last year Post’s domestic parcel volumes grew by 9.3%. Small parcels, which are now delivered by posties, make up over 70% of all parcels delivered in Australia,” he said.

“The assertion by the CEO of Australia Post that the organisation is in terminal decline is not true and is a deliberate strategy to drive down the service and soften up the Australian public to bring in his own changes to the Community Service Obligations (CSO) which will cost job’s not just in Australia Post but in associated businesses like Mail houses and printers which employ thousands of Australian’s ” said Mr O’Nea.

"Australians are not being told the whole story about Australia Post by Mr Fahour and we need to examine closely all statements before any changes to the CSO take place", he said

1. PricewaterhouseCoopers study conducted for royal mail

Contact: National Assistant Secretary, Martin O’Nea 0408 208 363 

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