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In August 2004, it was announced that the financial results of the Belgian Post Office had improved significantly, mainly due to cost reductions brought about by the implementation of new delivery-planning software. However, introduction of this system generated industrial action over summer 2004. Talks over a new collective agreement for the Post Office are due to start in September.
In 2004, the Belgian Post Office (La Poste/De Post) is performing better financially than in recent years. On 27 August, it announced an increase in turnover of 5.6% to EUR 1,072 million during the first half year of the year. Operating profits rose to EUR 78.2 million, compared with EUR 14.1 million for the first half of 2003, and net profits of EUR 88.8 million were earned compared with EUR 29.7 million for the same period in 2003. Whereas income increased by 5.5% to EUR 992.1 million, the cost of sales and services went down by 0.5%. According to Post Office management, these good results may be explained by a consensual effort to reduce costs, particularly through the implementation of programmes such as the Géoroute delivery-planning software and PostStation (BE0308303F). The second half of 2004 will see completion of the installation of the Géoroute software and the PostStation system. The latter will enable radical information technology innovation to take place in post offices throughout the country.
On 1 September, trade unions and Post Office management were due to meet to begin negotiations over a new collective agreement, which should come into force throughout the company on 1 January 2005. 'The discussions may be difficult', warned André Blaise, a representative of the Confederation of Christian Trade Unions (Confédération des Syndicats Chrétiens/Algemeen Christelijk Vakverbond, CSC/ACV). The particularly sensitive issues are the maintenance of early retirement from the age of 56 and the revision of pay scales.
The continued implementation of Géoroute is intended to improve the efficiency of postal delivery workers' rounds. At present, 336 out of a total of 570 post offices have already been equipped with this system, and management hopes that the remaining 234 offices will be equipped by the end of the year. 'We are on target with the timetable which we set ourselves for the implementation of the system throughout the network of offices', stated a spokesperson for the Post Office. However, Mr Blaise of CSC/ACV claims that 'management is in a hurry to make up for the delay it has accumulated up to now.' Many post offices have been paralysed over the summer by industrial action as a result of discontent generated by the implementation of Géoroute. 'One should not exaggerate: the problems we have encountered are not insurmountable. However, reorganising the working practices of 15,000 people requires a lot of dialogue,' said a Post Office spokesperson.
The Post Office is also finalising the preparation of a new business plan. The possibility of a strategic alliance with a partner will be examined.
The Post Office now has 1,250 fewer employees than in 2003, according to the figures quoted by the daily newspaper De Standaard. In 2004, the Post Office would like to cut its workforce by the equivalent of 2,130 full-time workers. In 2003, the equivalent of 979 full time workers left the company. At present, the Post Office employs the equivalent of 37,500 full-time workers. It would like to cut 8,500 positions by 2007. This should be achieved by 'natural wastage', with postal workers able to take early retirement from the age of 56.