Pay agreement ends An Post dispute

Management at the state postal company today moved to bring an end to a long-running dispute by agreeing to pay overdue wage increases to staff.

The board of An Post said it accepted the Labour Court’s recommendation on work-practice change and the payment of overdue cost of living increases under the Sustaining Progress agreement.

A possible Christmas postal strike was averted yesterday after the Communications Workers’ Union (CWU) agreed to accept Labour Court proposals on pay in return for work practice changes for collection and delivery staff.

The union has also confirmed it will recommend members accept the Labour Court’s recommendations.

Management said it welcomed the commitment by the CWU to recommend acceptance of the recommendations in a ballot and the calling-off of industrial action which would have disrupted postal services in the run-up to Christmas.

Margaret McGinley, the chairwoman of the board, said the key factor would be the implementation of the Labour Court recommendation to ensure a quality and timely postal service for the customers.

The Labour Court proposals recommended that overdue wage increases be paid in return for work practice changes for collection and delivery staff and it had made a number of changes to its original recommendations on changes in work practice.

The company has been seeking changes to the operation of its collection and delivery service to reduce overtime costs.

The CWU had threatened industrial action to pursue outstanding pay increases due to its members under the Sustaining Progress agreement.

Communications Minister Noel Dempsey had warned that a strike at An Post could usher in liberalisation of the market sooner than the planned 2009 date.

The firm saved €20m last year by not paying wage increases to around 10,000 staff.

The company made pre-tax profits of €7m last year, compared to an operating loss of €42m in 2003.