NZ Post half-year profit shows no need for drastic cuts to service

New Zealand Post’s $100 million half-year profit shows that the organisation doesn’t have to slash services, and the Government should stop putting pressure on the board to deliver bigger dividends.

“New Zealand Post provides a core public service which deserves to be supported, and it’s doing okay,” says Joe Gallagher, EPMU organiser for the postal industry. “There’s no need to panic.

“The postal industry is changing and we have to adapt to that, but this result shows there’s time to take a considered approach instead of cutting back services and jobs.”

New Zealand Post announced last week that it would be trialling the use of new vehicles, as well as a dependent contractor model which threatens workers’ wages and conditions. It is also planning to move its financial services team to the Philippines.

“The best international models involve a well-supported postal service which provides secure local jobs,” says Joe Gallagher. “With $100 million returned in just the first half of the year, the Government should be encouraging Post to explore those kind of models instead of moving towards a privatisation model.”

Kiwibank is also performing well in the half-year results.

“Kiwibank is becoming a very successful player in the banking industry,” says Joe Gallagher. “The Government should be investing more in both Kiwibank and New Zealand Post. The returns for our country – both financially and in terms of creating skilled, secure Kiwi jobs – are well worth it.”

ENDS

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