In Nov 2014, as a result of the Senate Inquiry recommendations, the LPO Forum was established to work though a range of issues highlighted throughout the Senate Inquiry. The most pressing for Licensees was recommendation 17, the review of our payments in light of the claims of unfair and unreasonable payments for the work we perform. The results of this review by PIP (Partners in Performance) saw a detailed study of a range of our transaction and services investigated. The first PIP Report was published via PostLink and Licensees have been able to view this report since May this year. In response to the investigation and the results, as announced in May 2015, the payment for Street Carded Article was increased to $1.60, to match the cost to provide this service, as per the PIP Report.
While LPOG was relieved to achieve the increase for street carded articles for some 1800 LPOs, we were equally concerned that there are many other ways that parcels arrive at LPOs, and those parcels require just as much, if not more work. Granted most other delivery points have a MMF payment for the delivery point, however LPOG does not believe the MMF covers the cost of providing the parcel service and managing all the other work for the delivery point. Australia Post responded to our concerns with a further PIP investigation into the POB service, counter delivery points, and the impact of the increased street carded payment for LPOs that do, or do not, receive this payment.
The results of this further investigation are expected to be released in the next few days, with notification of increased payments for a further range of LPOs that previously missed out on increased parcel payments. As with all of the payment issues under review, it is not as much as LPOG would like, but it is also far more than Australia Post has been paying.