Breaking NEWS - CBA to Support Australia Post

Finally bank customers might start to look as financially appealing as online shoppers collecting their parcels in our LPOs, with news just released by Australia Post of a deal with the CBA to increase our payments for providing this service. 

Media Release_Bank@Post.pdf

This will help many struggling LPOs, when combined with a few more increases that are sitting in the pipeline. For now, this is a well deserved thanks to Christine Holgate, Australia Post's CEO, for delivering much needed financial improvements to the LPO network.

That other news release of the increased payments sitting in the pipleline, is apparently being held up by the other mob, but the deal is done for LPOG members. LPOG is expecting to share that news imminently.

For now we can take a breath and enjoy the fruits of our CEO, Christine Holgate, and her new Executive Team, who have worked tirelesly to get this over the line. I think it is safe to say Christine Holgate would have liked this to have been put in place earlier, but its here now. Let's enjoy! Then we can get back to the other 3 of the big 4 to share the joy also with us.

 

Comments

Great News !!!!

Frankie's picture

Wow. That is brilliant. Thank you to Christine Holgate and the LPOG execs:)

seachangelpo's picture

Finally ....

the pie is growing and so does OUR share - finally. Be good if Government matched contribution being made by the Big 4 bank (banks?) dollar for dollar to maintain THEIR community service obligations !! Wonder if Mitch has signed off on those pesky existing Aust Post CSO's such as maintaining a min number of "outlets" ...... mmmmmmmmmm

Scott Evans's picture

Great news, thanks Exec, must be a relieve/reward to be able to share this good news with us.
Also, I read it as extending digital services to Community PO's, is that part of this?

maggiesimpson's picture

Good to hear. So in our terms how much will we now be getting for CBA withdrawals,deposits and do we now get paid for balance enquries? And when does it start?

Wormies72's picture

OMG !!!!! This news has really lifted my spirits no end. Thank you, thank you everyone involved and the biggest THANK YOU to the LPOG for every in road we have made over the last five years to keep us “hanging in” there to be around to finally see the bloody worm turn. I might have ham and wholeseed mustard on my sandwich tomorrow instead of Devon and tomatoe sauce. Damn the expense.

Bob's picture

Go for broke Wormies, buy a fresh loaf of bread as well. You only live once.

ASHA300's picture

,excellent news,more funding from CBA< and potentially more from the other 3 likely; & CH suggests an increase in the min payment for LPos,and increases in banking trans fee payment; ALL great, but its the other payments we need;as well.

I trust that this a turning point for LPO payments, lets see exactly what the banking increase.

westie's picture

Those of us who have pounded the CEO on Twitter for her lack of action should take this opportunity to acknowledge some progress, We demanded less talk and more action and she has acted. It's only a start, and she's not off the hook yet, but she can no longer be accused of doing nothing at all.

Wormies72's picture

I think I actually said words similar to that on my 2nd of only two reply’s I ever have done on Twitter. I feel more comfortable to just retweet. So I am off to twitter to keep my word and she has hers. Cheers for the encouragement Lanolin.

Best News ever. Hope the other banks feel the pressure to follow.

gully's picture

Wonderful news. Congratulations and thanks to all involved.
Question: In this announcement there was the suggestion that banking transaction payments would increase by 50%. Can we assume that a similar increase will happen when each of the other 3 also cough up some dough? (ie if all of the "big 4" contribute $20M/yr, does that mean banking trans payments will increase by 200%).

I don't expect this result. I expect that the "50% increase" was announced with the expectation that the other 3 banks will soon be onboard. But it would be nice if I was wrong.

LPOGroup's picture

I like your thinking but this was put to us in Jan when we got excited by C1's plans. The discussion then was for several hundred million and that would increase our payments by 50%. This plan is somewhat different and includes an increase in transactions which wasn't mentioned in Jan. However C1's Dear Amanda letter, and the media release suggests an increase into the LPO funding pie of $500M over 5 years. So I suspect we are not getting 200%, and the plan includes all the other coming on board. The Devil is always in the details. We look forward to seeing the details, but I also suspect they were waiting to get the money to see what they could do with it. So are we!
Kipper's picture

AP going yeah lets set up a new department to regulate our newly branded Bank@Post Offices. I think we can do it for $1200M a year.

Hopefully its not too long till they start mentioning $ and payment in lieu of signage and training.

ASHA300's picture

I am assumimng that;
If all big4 come on board, with a 20m payment each year for 5 years; the dear Amanda letter suggested an increase in bank payments to LPos would increase by up to 50%; I again assume that an individual comm payment per transaction would increase by 50% so a 2.00 payment to LPos would then become $3.00 per trans; and this would be applicable to each "on board bank;
so the suggestion is; increases to BIG4 transactions of up to 50% each;
Never really thought of the increases as a possible 200% increase; just an increase of contributing banks by up to 50% on each of their transactions; any increase in Banking payments is a plus;
And there was a mention of updated security, systems etc etc, all another plus;

If I have assumed incorrectly even better; but I do believe that any increase would by up to 50% on each of the big4 transactions.

Rargh's picture

Personally, this increase isn't going to mean a big increase for us. CBA is our most common banking transaction and it's going to mean an extra $40-50 per month? Not exactly going out to but a mansion with that..

However for me the act means more. This is the first sign of actual progression with LPO fees. There is a podcast interview with Christine Holgate floating around that I listened to. She was hammering on about the sustainability of LPOs. It was nice to hear it sound like someone actually was concerned about us for a change..

DAVID's picture

HOW MUCH OF THE $22M DO YOU THINK AP WILL PASS ON TO US???

This is such a , much needed, morale booster.
Thanks for all that contributed to it happening.
Hopefully the tide is turning for the LPO network

Lets wait until we see some actual figures before deciding to start sorting, dispatching cheques etc. The devil is certainly in the detail and we know full well who the devil is!

LPOGroup's picture

Our economic rationalisation was always in response to the inadequate CPI agency increases in July. LPOG stated, as a minimum we must see the increase match the mandatory GRIA 3.5 increase awarded to our employees, or Licensees if we are employees of our trading entities. We put that to AP in early May, and advised that under the Collective Bargaining Authority, we would not accept CPI. It did take a while but the new management took over the payment of Licensees, and agreed to arm wrestle our increases away from the rest of the business for a change. They cam to our party, we will get our increases as we required, so once the notification is in writing in your office, we can probably send in the cheques. We made our point and they listened. The measures were not in response to the payment reform project as that was always going to be a long term project. 

LPOG have received confirmation that the Agency payments will be increased in line with the GRIA, and the payment will be backdated to 1 July this year. AP expect to be able to advise the network of this change just as soon as POAAL respond to the notification. They wanted 2 weeks to agree to this increse (or to work out how to claim this was something they had a hand in). The 2 weeks expired on the 12th, so news should be coming soon. 

Jan's picture

Wonderful step forward now that the other big two are on board. I notice messages from C1 and N1 have mentioned network infrastructure, technology, training, security and marketing and the way I read it that is across corporates too, but no mention of us specifically. I really hope something is going to be announced to help us out soon as I for one am clinging on by the fingernails. I hope ap realise anything we get would mostly go straight back to them I reckon with either paying stock bills or buying stock!