The mailing industry and postal unions are stepping up their campaigns against Australia Post’s plan to increase rates for letters and bulk mail.
The mailing industry and postal unions are stepping up their campaigns against Australia Post’s plan to increase rates for letters and bulk mail.
Printing Industries is organising meetings this week in Sydney and Melbourne of all mailing industry stakeholders to map out a strategy to fight what it calls 'unprecedented' increases in postal rates. Those attending will include paper suppliers, mailing houses, advertising companies, IT firms and allied sectors along the supply chain.
“The major item on the agenda will be to formulate a combined submission to the Australian Competition and Consumer Commission (ACCC) to stop the increases,” said David Docherty, director of D&D Mailing Services.
“These are huge, across-the-board increases of over 40 percent and could result in massive job losses of between 20,000 and 30,000 in just the next 12 months, and that won’t be the end of it,” warned Docherty. “I asked Australia Post if they could rule out more increases again next year and they just looked at me like a tree full of owls. The fact is that they cannot rule out further increases.”
Unions representing postal industry workers have begun to mobilise against proposed price hikes which could 'decimate the industry,' according to the Australian Manufacturing Workers Union (AMWU).
A union protest rally was held outside Australia Post national headquarters at 111 Bourke St in Melbourne on Wednesday and union officials will travel to Canberra later this week to lobby the federal government.
“We are calling on the Communications Minister to implement all recommendations from the recent Senate inquiry into Australia Post, especially ACCC oversight of all business mail and the establishment of a strategic industry roundtable with a mandate to work though the opportunities and challenges facing the Industry," said Lorraine Cassin, national secretary AMWU Print Division.
“Small business relies on an affordable, efficient and reliable postal service," Martin O’Nea, Communication Workers Union, said in a statement. "Malcolm Turnbull and Post CEO Ahmed Fahour are vandalising this vital piece of national infrastructure."
ACCC chairman Rod Sims told The Australian Financial Review that Australia’s Post’s plan to increase the price of regular stamps from 70c to $1 is not yet 'a done deal.'
The ACCC would carefully consult with industry, unions and the public before making its decision, he said. "It is not a done deal. It is extremely complex because of the cost allocation, falling demand and question of which service you focus on."
The ACCC has released a comprehensive issues paper that questions whether a 43% price rise to consumers in one hit would be preferable to 'a price path over time.' In a press release, the ACCC said it was releasing the paper to identify issues on which the ACCC is seeking stakeholder views:
The ACCC’s assessment of Australia Post’s pricing proposal will focus on: the method by which Australia Post allocates costs between its services; Australia Post’s forecasts of letter demand and revenues; the forecast improved financial performance of its monopoly letter business; productivity improvements leading to operational cost savings expected from implementing a slower letter delivery timetable.
The federal government has regulated to allow the introduction of a two-speed letter service by Australia Post, which will distinguish between letters delivered at a priority and regular timetable. The ACCC is required to assess the proposed price increase in accordance with the Competition and Consumer Act then notify Australia Post as to whether it objects to the proposed price increase.
A report commissioned by the unions from consultants ACIL Allen found that the mail industry employed 131,709 full-time jobs and contributed $14.2 billion to the economy.