Lake vows to make Maltapost profitable by next year

A mere 18 Maltapost employees have so far agreed to return to government employment, a far cry from the 160 who have to be shed to make the postal company viable.

Company chief executive Rob Lake said Maltapost was however optimistic that more workers would apply to go back to the government before the August 8 deadline.

In an interview with The Times, Mr Lake also pledged to turn Maltapost into a profitable company by the end of the financial year in September 2004.

Mr Lake admitted that there were a number of misconceived ideas about returning to the government, even if employees have been assured that they would retain the same terms and conditions.

In the meantime, Joe Morana, UHM section secretary yesterday convened the 330 ex-government employees to explain their rights and conditions so they could take an informed decision.

The Union Haddiema Maghqudin had been in a long-standing dispute after Maltapost announced it had a surplus of 266 workers for its restructuring plan.

The government has decided to assist Maltapost in their reforms and agreed to absorb 160 ex-government employees.

A letter was subsequently sent to about 330 ex-government employees asking them to declare whether they wished to return to government employment or not.

Mr Lake said Maltapost would need to speak to the union and to the government about the matter if the shortfall remains.

"We're hopeful that wouldn't be the case. But if so, we have agreed with the union about the need to reorganise the business and in that case seniority applies. In the end we might need to downgrade some workers."

The collective agreement covering 774 Maltapost employees was signed two weeks ago after nine months of talks between the company and the UHM.

Mr Lake said the agreement would lead to a new postal processing system and the introduction of a code of behaviour to preserve the company's good name, together with modern and less bureaucratic disciplinary procedures.

He said an operational plan was built around centralising all the mailing processes in Qormi, and establishing five delivery hubs, four in Malta and one in Gozo.

By the end of September all Maltapost branches will be fully-automated and connected.

In the process, Maltapost agreed to re-align and increase the postman's beat to approximately 35 hours per week, which should bring about an increase in the level of productivity of about 43 per cent.

Late evening shifts were introduced, coupled with an increase in salaries.

The introduction of payment of bills across the counter and parcel delivery, together with ticket sales were among the avenues which Maltapost hopes could inject more business, resulting in higher profits.

In the coming months, Maltapost intends to starts clearing parcels from Customs and will start delivering to businesses and home, Mr Lake said.

He made it clear that better processes and systems could be used to fuel productivity.

"We want everybody to work differently. We need to operate as efficiently as we possibly can to try and control costs and avoid putting pressure on prices."

Despite the constant allegations of theft from the post, Mr Lake played down any problem of security.

"People here are honest, but yes you do get a percentage of people who aren't. And we will catch those people, because they put at risk other people's jobs," he vowed.

The installation of close circuit television and tight access control systems were among the measures taken by Maltapost to beef up security.

Mr Lake said the reduction of 160 employees from Maltapost's books would reduce the company's cost base and turn losses into sustainable profits.

At the end of the last financial year, Maltapost registered a loss of Lm83,000.

Asked whether his company regretted in any manner choosing Malta to invest in, Mr Lake admitted that the resistance to change was particularly frustrating.

"There is a scepticism to change, but in the end if Malta wants to progress it has to embrace change," he reasoned.

He also raised the "easy access" some employees had to politicians whenever they felt aggrieved by any staff movements or promotions.

"People have to realise that in order to survive in future they have to be distant from such influences."

Still, his company had blended perfectly with the local management, and the road to recovery had now been set in motion.

Mr Lake comes from New Zealand Post subsidiary Transend, which bought 35 per cent of Maltapost in a $6.5 million deal in February last year.