Chief executive officer of Lithuania Post introduced the means, which will help to increase the salaries of postmen by 10 percent

Oct 31, 2013

Today the Ministry of Transport and Communications hosted the meting of the Board of AB Lietuvos paštas, during which the CEO of Lithuania Post introduced the measures allowing to reduce the planned loss more than two times already this year and to increase the salaries of postmen up to 10 percent.

„The Board of the company in today’s meeting approved the action plan aimed at stabilisation of the company’s financial situation and modernization of its activity, - said Director General Andrius Urbonas. – One of the core measures – implementation of the new company’s management structure, which includes centralising of majority of the similar administrative functions and reducing the number of positions, which are not directly related to the postal activities“. According to A. Urbonas, the staff costs in the company make about 70 percent of all costs, and the administrative chain throughout whole Lithuania yet has inner resources.

A. Urbonas stressed that these reforms will not touch the most vulnerable chain of employees – postmen. From 1 July 2010 the rise of the salaries up to 10 percent is foreseen for the personnel of the production chain. According to CEO of Lithuania Post, while reforming the structure of the company and striving for the efficient activities it is necessary to reduce the number of employees by 13 percent in total, the most of which – personnel of administration. It is calculated that the mentioned changes in the field of personnel will give an annual economic effect of about 16,5 million litas.

After implementation of the foreseen measures, Lithuania Post could finish 2010 with 17 million litas loss. „Already by today, after revision of the contracts with current providers of IT, money collection, cleaning, security and other services, we managed to save 4 million of annual company’s expenditure, - said Andrius Urbonas. - The presented optimisation plan does not include such measures as effective use of the real estate non related to postal activities, employment of new areas of cooperation – these could also positively influence the final financial results of 2010“.

One of the additional cost-saving means – from the 1st of February of this year the organization of the work of most rural post offices will be changed: they will be open five working days a week. „Considering the reduced need for postal services in rural areas, we decided to reorganize the work of such post offices on Mondays and Saturdays, which will allow 2.5 million yearly savings”, - said Director General of AB Lietuvos paštas Andrius Urbonas. – In any case, these changes are not final and considering the actual needs of the customer the working days of the rural post offices might be adapted accordingly”.

Thus from the 1st of February the letter mail and periodicals to the inhabitants of rural areas will be delivered five days a week – on Tuesdays-Saturdays. The delivery in the urban areas will not change – letters, parcels, newspapers, journals will be delivered six days a week (Mondays-Saturdays). The customers on Mondays-Saturdays will be served in 129 urban post offices, on Mondays-Sundays – in 4 service provision points.

Also there is planned possibility to give to the employees of administration 1 to 4 days of unpaid leave per month – this would allow to save up to 5 million litas more; also to optimise the logistic routes, etc.

Without making any changes in the organization, the possible loss of 2010 would be more than 50 million litas.

„The nearest plans of the company are constantly introduced to the personnel and Trade Unions representing them, - stressed A. Urbonas. – Any planned changes will be performed in an open, transparent manner and complying with the laws”.

Today AB Lietuvos paštas has 7627 employees; the postal network embraces 736 stationary post offices and 28 mobile ones. Following the order of director general, the closing of the post offices foreseen by previous management, was discontinued, also the suggestion of Trade Unions regarding the minimum duration of working day of the rural post offices was accepted – the rural post offices will work at least two hours a day.