The Communications Workers Union claimed yesterday that it was "extremely surprised" at the disclosure by An Post that it wanted to cut its staff by 1,140.

The claim by the union's general secretary, Mr Con Scanlon, appeared to contrast with the position he adopted on Thursday, when he welcomed the company's move to intentsify a cost-saving plan.

Mr Scanlon said his position had not changed.

An Post has projected the "certainty" of a deficit exceeding €37 million (£29 million) this year following a loss last year of €7 million.

It wants to cut its wage bill through voluntary redundancies and early retirements to avoid running out of cash from its reserves next year.

Mr Scanlon yesterday said the union had no agreement on the level of redundancies sought by An Post and claimed a memo distributed to staff on Thursday gave that impression. An Post disputed the claims.

Signed by An Post's chief executive, Mr John Hynes, the memo said: "Under our recovery operation, over 1,140 jobs will cease, across all business division and grades between now and the end of 2003." Mr Hynes's memo said he was confident the changes could be achieved "by using the partnership approach" at the company.

Mr Scanlon agreed that job reductions would be required as new technology was introduced.

But he said: "What we haven't done is quantify in any way what the level of redundancies will be and that can't be done until a detailed examination of what is required is made."

An Post is understood to claim that its unions were informed late last year of the changes it requires.

Mr Scanlon added: "There is no agreement with the unions in relation to the level of redundancies that the chief executive is talking about. Secondly, the manner in which the company has ignored the partnership process in place I would believe to be a breach of faith."