AUSTRIA: POST CUTTING SERVICES

Article Abstract:

In a "pilot project" in the Wildschonau valley in Tirol, the Austrian Post is stopping delivery of mail to people living 1 km or further away from the next village. Parcels and registered mail will continue to be delivered, and also regular mail to elderly and handicapped people. Others have to collect their mail from the post office or a shared letter box.

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AUSTRIA: COMPETITOR CONCERNED ABOUT FEIBRA BUY

Article Abstract:

In Austria, the advertising leaflet distributor Gesellschaft fur Werbemittelverteilung (GFW) is concerned about the plans of Osterreichische Post to buy into GFW's competitor Feibra. The Post is preparing for the loss of its monopoly for letter mail in year 2003. After that date GFW, which is owned 50% by the Dutch Post had been planning to start offering delivery of addressed mail. Observers estimate that the Post and Feibra would gain a market share of no less than 60% in Austria. Also Deutsche Post is said to have been eyeing Feibra.

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AUSTRIA: POST PREPARING FOR COMPETITION

Article Abstract:

Anton Wais, director general of Osterreichische Post, has announced plans to prepare for the deregulation of the letter post market. Profitability of the Post is to be improved by 20% to the level of the British Post Office. Currently turnover per employee at the Austrian Post is Sch 48,000, while at the German counterpart, Deutsche Post, it is Sch 73,000. The target translates into a surplus of about 6,000 of the Post's 31,000 staff, of whom 19,000 have the status of civil servant . According to Mr Wais, the staff cuts are to be carried out by redundancies, golden handshakes, re-training schemes and encouraging part-time work. However, Mr Wais is hoping that legislation is amended to make this possible. Based on the experience of Deutsche Post, the job cuts would cost Osterreichische Post about Sch 4bn. At the same time, investments are needed to modernise the post offices, for which, too, Mr Wais has new plans. Details are to be fixed within three months, but the plan is that in future there will be three types of post offices. The majority will be basic ones providing simple services to private consumers and small businesses. The second type will offer additional services such as neighbourhood aid, shopping and home delivery. The third type will offer a wider range of services still, including copy shops, and selling products such as stationery and packaging materials. The number of post offices from which mail is delivered is to be cut from 1,970 to 430.

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