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Time To Step Up

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Licensees across the country need to contact their local federal members, as a matter of urgency, and discuss the dire situation facing Licensed Post Offices today, before it is your office that it is too late to save. Over the last few weeks several Licensees have had to make the very difficult decision to close their doors and walk away from the business that they once proudly purchased. Many Licensees live with the daily fear of their valuable business income being striped away from their businesses to benefit the corporate arm of Australia Post. Daily we see examples of customers being poached by ruthless account managers, customers enticed to shop online with offers of prices below our wholesale costs, stock delays or cancelations, mail contracts being downgraded or passed onto cheap alternatives, payment rates and profit on sales being cut or removed, new transactions being denied to the LPOs, and an ever increasing workload expected to be performed for little or no financial return.

This is not the way to run a successful Government Business Enterprise and Licensees need to stop thinking that they have no option but to accept the road to doom. Licensees purchased their businesses in good faith, with a solid expectation that they would enjoy a healthy and comfortable future, working hand in hand with the corporate partner. 

Who is accountable?

Not so long ago Australia Post was proclaimed one of the most trusted brands in Australia.

The latest Annual Report suggest Australia Post is the second most trusted brand in Australia (2013 AMR RepTrak study).

So why is this once great customer focused business being run into the ground by a profit driven, narrow minded executive? And why is this being allowed to happen?

Licensees in LPOs are at the coal face and our customers are certainly not happy with price or service.

How to Make A Licensee's Blood Boil

Australia Post's profit up by 11%

Last financial year Ahmed Fahour took home a base salary of just under $2,000,000, and on top of his base rate, he took home incentive bonuses of $2,700,000, according to the Sydney Morning Herald Business today article. That is $91,000 EVERY WEEK. $2,200 PER HOUR. Considering that most Licensees are lucky to break even running 80% of this network under his watch that is just obscene.

There is no other way to describe this.

Apparently he has met the Australia Post's Board of Directors 'Targets' to earn his bonus. Do any of these people live in the real world? Is the Board complicit in the underpayment of fair and reasonable fees and commissions, of an estimated $110,000,000 based on the CPI, to Licensees each and every year for at least the last 5 years. Is this underpayment part of the Board's target. Or can we be expected to believe they are simply not aware of the facts.

Quote of the Day by VM

Nowadays people (such as the Australian Government via Australia Post) know the price of everything and the value of nothing' (Oscar Wilde). Rather than actively encouraging the destruction of local rural communities, the new Australian Government should celebrate the value of the vital social contribution made by local post offices that far exceeds just the delivery of mail.

Another Super Contractor Goes Belly UP

Toora Problems and Super Contractor

I too had a ‘super’ contractor operating in my area. This week I discovered this ‘super’ contractor has appointed a liquidator.
 
The company is Maidel Pty Ltd [ACN 104 883 007] and is located in Wauchope about 140kms from my LPO. The company was registered on 28/05/2003 and the liquidator was appointed 16/08/2013.
 
As I understand it Maidel Pty Ltd had control of around 30 to 40 mail contracts in and around the mid north coast of NSW and had a reputation of underbidding to get the work.
 
Looks like this ‘super’ contractor may have got himself into a ‘little’ financial difficulty and/or been a very naughty boy.
 

To The Hon Malcolm Turnbull

It is not unreasonable for the BPR to increase annually in line with CPI – this is what happens in other countries including the USA and United Kingdom so why doesn’t it happen here?
I would like Mr. Turnbull to ask Mr.AP to provide a detailed (read very detailed) written report explaining why the majority (if not all) postal products and services have increased in line with CPI except the BPR.
 

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