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The company has time to agree on a new pension delivery tariff, which is expected to be approved before December 1. This would allow dropping job cuts.
Ihor Smelyansky, CEO of the public joint-stock company (PJSC) Ukrposhta, Ukraine's state-owned postal services provider, says the company has already launched a procedure for reducing administrative staff and management by 30% according to the anti-crisis plan, which entered into force on November 1.
"This [redundancy] accounts for 30% of the salary fund of administrative and managerial personnel. And it's not top management. Accountants, IT specialists, and others are considered administrative and managerial personnel. Therefore, this is 30% of non-production personnel salary fund," he said at a press conference in Kyiv on November 1.
According to Ukrposhta CEO, he signed the relevant document on Thursday, and addressed the trade unions with the corresponding notification.
Smelyansky says the company has time to agree on a new pension delivery tariff, which is expected to be approved before December 1. This would allow dropping job cuts.
As UNIAN reported, Smelyansky earlier announced that the company had prepared an anti-crisis plan, which would come into effect as of November 1, unless an economically viable tariff for the delivery of pensions is accepted. According to the plan, the company will shut down 5,000 to 7,000 offices and dismiss part of its administrative and production staff.
Ukrposhta received UAH 203 million (US$7.2 million) in net losses in 2017 against UAH 158 million ($5.6) in net profit posted in 2016.
At the same time, Ukrposhta estimated its losses from pension delivery services at UAH 1 billion ($35.6 million) per year.
In the summer of 2018, Ukrainian President Petro Poroshenko spoke strongly against the reduction of Ukrposhta's branches in rural areas, as well as the intention to stop providing pensions through the operator's offices.
UNIAN memo. Ukrposhta is the national operator of postal services under the authority of the Infrastructure Ministry. The company offers more than 50 types of services through over 11,000 offices across Ukraine. The company employs nearly 76,000 people.