Business & Economy

Australia’s postal service to stop daily letter deliveries

Sydney, Australia, Dec 6 (EFE).- Australia on Wednesday announced an end to the daily delivery of letters as part of a series of reforms aimed at modernizing the country’s postal service and making it profitable.

“Letter delivery frequency will be reduced to every second business day for 98 per cent of locations, whilst parcels will still be delivered daily,” the communications and finance ministries said in a joint statement.

“Letter volumes have reduced by two thirds since their peak in 2008, while parcel volumes have boomed,” the statement added.

The reforms will be implemented over the next 12 months along with other changes to increase the number of parcel posting and collection points.

Between July 1, 2022 and June 30 of this year, Australia Post delivered around 500 million packages – about 20 packages per person per year – while each household receives on average two letters per week, according to the statement.

“In an environment where customers are sending fewer letters and more parcels, it is important that the business structure of Australia Post reflects the needs of the modern Australian consumer,” Finance Minister Katy Gallagher said.

During a series of trials of the new model, agreed upon by the workforce and the Communication Workers Union, Australia Post found that they allowed workers to transport up to 20 percent more packages and make deliveries to 10 percent more locations.

“These new processes will mean Australia Post continues to deliver the high-quality letter service many Australians rely on, while also growing its booming parcel business for the benefit of consumers, small businesses and its hardworking staff,” Communications Minister Michelle Rowland said.

Australia Post is owned by the State but is self-funded and required to generate a financial return.

However, in its last fiscal year the company recorded a loss of AUD 200 million ($132 million), the second annual loss in more than 30 years. EFE

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