Australia Post has responded to a widespread industry backlash against its range of proposed price hikes by announcing a 25 per cent discount on promotional mail as part of a new customer support package.
Australia Post has responded to a widespread industry backlash against its range of proposed price hikes by announcing a 25 per cent discount on promotional mail as part of a new customer support package.
Industry analysts described the move as a step in the right direction for the often-troubled relationship between the printing industry and Australia Post.
The national carrier unveiled the changes following last week’s meeting in Sydney of stakeholders - independently chaired by former Victorian Liberal Senator Helen Kroger - that included representatives from the printing and direct mail industries, employee unions, the licensed Post Office network and other stakeholders.
In a statement, Australia Post said that after receiving ‘feedback’ from forum representatives, it had developed a new wide-ranging package to support customers through mail reform that includes:
· As part of our proposed January 2016 changes, increase the discount on Promo Post to 25 per cent off the PreSort price until mid-2017, providing significant growth opportunities for direct mail businesses.
· Limiting the price of the Priority stamp price to no more than 1.5 times the Regular service stamp price.
· Continuing to minimise increases for the not-for-profit sector by increasing the discount for charity mail.
· Maintaining the concession stamp price at 60 cents, available to 5.7 million eligible Australians.
· Freezing the price of a seasonal greeting card at 65 cents.
“With reform, our mail service has a strong future and we will continue to have an open dialogue with all parties involved on implementing these changes,” said Post CEO Ahmed Fahour. “The support package further builds on commitments we have made to our employees, our Licensed Post Office network and the broader community that we will keep our Post Offices open and posties out on the road delivering five days a week.”
Fahour said the organisation was working closely with unions to support employees through the transition phase. “We have made a commitment to our people that there will be no forced redundancies for employees affected by letter reform. Our focus is on continued retraining and redeployment of our staff to growth parts of the business.”
Last month, Fahour blamed a 10.3% drop in the posting of ordinary stamped letters in 2014-15 for a $222 million after-tax loss for the year, compared to a profit of $116 million the previous year. Total losses in the mail business grew to $381 million, he said.
Kroger has welcomed the new package: “The goodwill shown by all stakeholders through this productive, consultative process will hopefully help the sector achieve long-term sustainability.”
The move has been generally well received across the printing industry, although one analyst noted: “The cynic in me might say they are avoiding an ACCC lambasting but good decisions are good decisions no matter what the motivation, so Australia Post deserves a pat on the back for this.”
In recent weeks, the mailing industry and postal unions stepped up their campaigns against Australia Post’s plan to increase rates for letters and bulk mail, which is now before the Australian Competition and Consumer Commission.
Printing Industries organised meetings in Sydney and Melbourne of all mailing industry stakeholders to map out a strategy to fight what it called ‘unprecedented’ increases. Those attending including paper suppliers, mailing houses, advertising companies, IT firms and allied sectors along the supply chain.
“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 David Docherty, director of D&D Mailing Services.