The cooperation negotiations concerning the restructuring of administrative and supervisory positions in the Postal Services business group have been concluded. The restructuring is to be carried out in the form of Posti’s internal arrangements, and, thanks to that, new roles will be created, which reduces the need for dismissals.
The negotiations are the result of a dramatic fall in mail volumes. The postal and newspaper industries are undergoing radical structural changes. The volume of letters delivered in Finland has decreased by half within ten years, and the volume of printed newspapers has fallen to the level of the 1950s. In daytime delivery, Posti only delivers an average of five to eight items a week to each Finnish home. In the coming years, the volume of mail will continue to fall rapidly as the communication between people, companies and the authorities is increasingly digitalized.
In addition to the new roles, the need for personnel reduction was also reduced through voluntary solutions. The current reduction need is 94 employees. At the beginning of the negotiations, the reduction need was estimated to be 120 permanent employees at most.
The restructuring of work aims to cut costs and strengthen Posti’s clear and consistent common practices, introduced at the turn of the year, in which the services are as close to the customer as possible.
Cost savings are needed as mail volumes fall
Posti needs to cut costs by at least EUR 150–200 million over the next three years. These cost savings are required due to the dramatic fall in mail volumes alone. The income from the decreasing volume of letters no longer covers the cost of five-day delivery.
The Parliament of Finland opened postal services to full competition in 2016 and, as a result, competition in delivery services has intensified. Posti operates on market terms. Posti’s operations are financed by service charges paid by customers and, unlike many other postal sector operators in Europe, it is not subsidized by the State.
New growth is sought through investments
At the same time, and in line with its strategy, Posti aims for strong growth in e-commerce and logistics services, which are both growing markets. The changes in the business environment and customers’ needs mean that Posti must invest in new types of services, digitalization, technological solutions and expertise.
Focus areas in Posti’s strategy include success in e-commerce, evolving logistics, maintaining the importance of letters and publications among customers, updating Posti’s service culture and leveraging the digital transformation to improve Posti’s services.