An Post is close to concluding a productivity deal at its SDS subsidiary which will allow it to drastically reduce overtime while maintaining the flow of 28,000 parcels a day. At present sorters work up to 60 hours a week to process parcels but will soon be required to work no more than 48 hours under the Organisation of Working Time Act.
Under the new "team working, task focused" arrangements sorters will be asked to process a similar amount of material in 37.5 hours instead of 42 hours.
The new agreement with the Communications Workers' Union provides for overtime working at peak periods such as Christmas but is designed to make productivity more attractive by offering sorters 80 per cent of the savings made from working faster.
The company believes it needs the new system to prepare for intensifying competition. At present it has around 55 per cent of parcel business in the Republic and has been growing market share by around 1 per cent a year.
To protect basic earnings, workers are to be paid a special 9.5 per cent allowance on top of existing hourly rates for co-operating with the new system. One of the issues holding up conclusion of the deal is how much of their increased earnings will be considered for pension purposes.
CWU shop steward Mr Brendan Scanlon said the new deal should improve the service for customers as well as working conditions for the 160 staff. About 20 supervisors and inspectors are being redeployed as team leaders under the new system, or into project work developing new business for SDS.
The deal is being concluded under the overarching agreement at An Post that will provide employees with an Employee Share Option Plan. This is expected to give staff individual share holdings worth around £3,000.
CWU assistant general secretary Mr Terry Delaney said the agreement was "part of an overall strategy to improve pay and conditions while improving the competitiveness of the company".
