Lithuanian To Reorganise Postal Network To Reduce Losses
30 October 2009 - Lietuvos Pasta
Lithuanian Post, AB Lietuvos paštas, is seeking to further minimise costs by reorganizing some 72 loss-making rural post offices by the end of this year.
The losses incurred were an average of 32,000 Litas each - 2.3m in the whole of 2008 and the company said it had no choice but to reorganise most of these branches over November and December this year.
“Universal economic decline, reduced purchasing power of customers and a difficult situation for the company is forcing us to make non popular but necessary decisions"said Director General of AB Lietuvos Andrius Urbonas.
"Since post offices are an important focus for society, the optimal solution must be reached with consultation - with representatives of municipalities, analysing the flow of customers, volumes of the services provided in loss making post offices, considering their technical conditions, and at the same time we must strive to ensure the further provision of services in order that citizens would not face inconveniences.“
In the Vilnius region, the reorganization is scheduled for 20 post offices, Kaunas branch – 10, Siauliai branch – 22, Panevezys branch – 20 post offices. The changes in the postal network will allow the company to save 2 million litas this year and about 4 million starting from 2010.
According to A. Urbonas, the provision of postal services will be ensured by changes to the postal network with some services replaced by mobile post offices or relocated to other post offices.
Employees of the reorganized post offices are to be offered new positions: about 70 percent of them will shift to mobile and other post offices. The reorganization of the postal network is being performed in compliance with the rules of the public postal network of the universal service provider approved by the Minister of Transport and Communications.
Currently AB Lietuvos paštas has more than 8,000 employees, the postal network consists of 808 stationary post offices, 9 sub-offices and 16 mobile post offices.
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