Partnership seen as only way forward at An Post

Trade unions and management at Ireland's postal company, An Post, have begun work in 1998 on a complex partnership process, involving the creation of decentralised structures.

Trade unions and management at theAn Post state-owned postal company have begun work on a complex "partnership" process, which is being kept separate from day-to-day industrial relations issues. The partnership model they hope to construct will be based on principles enshrined in the current three-year economic and social agreement, Partnership 2000 (IE9702103F). The National Centre for Partnership, established in mid-1997 (IE9706202N), has been given a key facilitative role in the new process, which is being overseen by a top-level joint management/union group. The Communications Workers Union (CWU) is the main union at An Post, which employs up to 8,000 workers.

An essential feature of the new partnership structures is that they will be based on both a business unit and on a local basis, moving away from the sort of centralised structures which have been dominant in An Post for decades.

The joint union/management effort is also seen as an attempt to act on the recommendations of a number of highly critical reports in recent years (IE9712238F). The two main studies were by Price Waterhouse (1995) and Employee Relations Services (1997), a consultancy division of theIrish Business and Employers Confederation (IBEC). For example, the Price Waterhouse report described the culture within An Post as being characterised by a public service ethos rather than a commercial customer-oriented one, historically based in the tradition of the civil service and reinforced by existing agreements, structures etc. This culture is reportedly not consciously expressed, but is nonetheless strong and ingrained.

While the company posted impressive financial results on 29 April 1998, with pre-tax profits of some IEP 14 million, its profit margin of 1.7% was down by 0.2%. This is well below its competitors which achieve between 4%- 5%. Like other major public services and utilities, An Post is also facing a more deregulated environment in the coming years.

An Post's chief executive, John Hynes, told CWU delegates at their annual conference on 30 April that the company had gone as far as it could in terms of improving the business within its existing structures. If the company and its employees did not embrace change, they all faced a "slow death" from a gradual exposure to competition. Replying, CWU general secretary, Con Scanlon, said: "We also want a new way of doing business ... that allows us a say and a share of the benefits. [John Hynes] can convince me, but it will take time to convince everyone, given our history."