An Post has announced that it is consolidating and reducing its mail handling capacity in line with global industry trends and shifting investments to its e-commerce and parcel network in Cork, south-west Ireland.
The Cork Mails Centre (CMC) will be closed due to the consolidation of letters operations, resulting in the loss of 216 jobs with 240 people affected in total. As letter volumes decline about 7% per year, the Cork plant is currently operating at below 25% capacity, the Irish postal operator pointed out.
Phased between September 2019 and March 2020 the staff affected by the closure will be offered strong exit packages of 6 weeks per year of service up to a maximum of 2 years’ pay. Furthermore, redeployment opportunities within An Post’s networks in the Cork area, where nearly 1000 people are employed at the moment, are offered.
To take advantage of re-skilling opportunities, up to €3,000 per person are provided along with help to secure jobs with new employers, for example through a Jobs Fair and outplacement support.
An Post further stated that the company is engaged with the Communications Workers’ Union (CWU) in order to ensure the best possible outcome for all the CMC staff. In its Recommendation of September 2017, the Labour Court considered the closure of the mail centre.
With the €11 million savings per year resulting from the plant closure, An Post will be able to invest more rapidly in the parcels infrastructure nationally as well as locally. The automation of parcel sorting will become a focal point too, as parcel volumes have continued growing by 60% since An Post’s 2017 active re-entering in the parcels market.
Moreover, An Post plans to over the next three years spend more than €15m across Cork City and the wider region to enhance its parcels infrastructure. For example, 1,040 parcel lockers are being installed across the county to make pick-up more convenient.
Also, a new, all electric zero-emissions fleet will start delivering and collecting in Cork City over the next few weeks. An expansion to Kinsale, Bandon, Midleton and Mallow will follow next year. Already next month, however, a new €750,000 delivery unit will start serving the Skibbereen area.
Lastly, a major refurbishment in Cork’s GPO in Oliver Plunkett Street will reflect the rapidly growing range of services being developed for customers.
Garrett Bridgeman, Managing Director of An Post Mails & Parcels, said: “This is a very tough day for the staff at Cork Mail Centre who have delivered a consistently high level of performance over the years. The closure is simply due to the global trend of mail volume decline which has led to significant over-capacity in the mails system. Our priority is to look after our employees who have given great service to An Post by providing alternative employment options, good redundancy terms, further education grants and active access to other employers.
“The switch of investment into parcels infrastructure will greatly increase the range of services to customers across the region and will ensure that Cork has the best e-commerce delivery service, while ensuring the mails service to customers will be maintained at the current high quality levels.”
David McRedmond, CEO, An Post said: “An Post is responsible for its own finances and has worked hard to return to profit and growth: the company’s task now is to develop long-term sustainability. Closing the Cork letters’ facility is a tough but necessary step as we invest in the new world of parcels for our customers.
“I want to be sure of two things: first, sustainability is about decent work and we will look after our employees as well as possible; and second, I want Cork to be the first city in Ireland to benefit fully from the new parcels infrastructure for customers.”
