Rural delivery the ‘canary in the mine’ of postal restructure

    New Zealand post robust defense of a
    model that knows has flaws has sobering
    Echoes of the UK post office Scandal
    writes Maria slay in this week’s Sho
    shine well Maria I’ve I’ve seen the
    documentary and and the drama
    dramatization of Mr Bates versus the
    post office and it was really shocking
    stuff um and a massive corporate Scandal
    um are there really parallels to what’s
    going on here in New Zealand yeah
    readers are probably familiar with the
    the two Doos or the dramatization and
    the doco that have been shown on New
    Zealand television screens in recent
    weeks you know it was massive over 900
    postal workers wrongly convicted
    prosecuted um over this you know it
    system that was showing up uh Cas they
    were the only ones they were the only
    ones showing up these cash losses that
    weren’t real and you know to to this
    this day they are still fighting for the
    compensation and obviously we haven’t
    seen anything like that here but we are
    seeing a big uh sort of change in the
    way our Postal System operates New
    Zealand posts announced that it will
    merge mail and parcel deliveries into
    one cized model um but this is rural
    deliveries isn’t it this is across the
    board over the next 5 years they will
    gradually merge mail into Coura and
    there will be one network and there’s
    going to be something like 750 job
    losses and then the other thing that’s
    happening at the moment is it’s deed of
    understanding with the governments up
    for Renewal and that has to be done by
    the end of June and so there are a lot
    of people sitting on the sidelines going
    well what is this new deed going to say
    because we’re starting to see things
    like New Zealand post announced the
    other day that it’s cutting Saturday
    deliveries to rural um customers so thin
    into the witch you know what what’s
    going on there’s a lot of questions
    being asked and just for readers so they
    know what does the deed actually include
    what what does it cover well the deed
    covers their their service obligations
    and you know what they are supposed to
    do so at the moment it’s 5day male
    deliveries to Rural and 3-day to Urban
    as we know but we don’t know what the
    new structure will be particularly given
    posts announcements and so look I you
    know the career industry is watching
    this with great interest because there’s
    a lot of problems with the rural
    delivery funding model and so I put a
    request in to speak to David Walsh the
    chief executive of New Zealand post and
    I was just given a one liner uh this
    does not affect rural delivery and that
    that just can’t possibly be true because
    they in my opinion because they have
    signaled as far back as 2013 that
    they’re looking at three-day deliveries
    for Rural customers and the other
    problem is we’re starting to see
    examples of how the rural delivery
    funding model just doesn’t work there’s
    been a case in Hamilton um a couple
    called Danny and Ian Kennedy who ended
    up losing their run over disputes with
    New Zealand post and now bear in mind
    these are runs that these business
    people pay for in the case of the
    kennedies they paid $350,000 for what
    they thought was an exclusive run and in
    the court papers uh as part of their
    dispute it’s Ave Ed that the funding
    model was just didn’t work they were
    just basically underfunded for all their
    labor costs their vehicle costs they
    ended up working for less than minimum
    wage so there’s problems with that model
    and The Courier sector are going well is
    this the model they’re going to roll out
    across Sur if they have less days it’s
    going to be even less viable well that’s
    that’s the other thing so if if they
    were to cut two three days a week uh
    that would presumably mean half the
    number of Rural delivery contractors is
    about 300 560 at the moment uh also you
    know it’s like so the funding model
    doesn’t work now how how would they be
    making it work these are all questions
    that New Zealand posters just not
    answering and a report that was done 10
    years ago said if because they get paid
    this Benchmark rate for delivering the
    mail if they were to cut it to 3 days it
    simply wouldn’t be worth these rural
    cers while so how are they going to make
    it work do you think the court action is
    y andz post is being fairly secretive
    about this well the elephant in the room
    to all of this is that I am aware that
    there has been another case and
    involving a group of couriers in another
    part of the north Ireland the kennedies
    are in the W and it wasn’t just them too
    I might add there were other couriers
    that were in a similar position this
    other group uh it ended up that there
    was a Professional Services firm that
    did a report on the funding model and I
    am told it concluded that the funding
    model was inadequate and so New Zealand
    post I believe settled with these
    couriers and so I have put in a request
    under the official Information Act to
    get this report post hasn’t denied that
    it exist existed but they have just said
    that they have an obligation of
    confidentiality so it won’t be released
    so again we’re none the wiser as to what
    is going on but if all that that is
    correct then that that has big
    implications for The Wider rural
    delivery sector and also the wider model
    change that they want to move to and and
    of course wide implications for the
    people who live in rural areas doesn’t
    it well that’s right and just no one’s
    talking about it at the moment um but
    you know if you think about it okay so
    it’s not the UK postal Scandal but if
    you ever we think about some of the
    parallel things
    you know this is a corporatized model
    that’s under stress because of change
    it’s what we’ve got here um this is
    potentially a nationalized payment
    system that’s gone wrong and individuals
    are having to Bear those
    losses uh you know um post is very
    robustly defending itself and not you
    know talking about what the implications
    may be for a system that they know has
    got flaws so it seems to me there’s some
    serious questions to be answered about
    what’s going on hopefully uh it doesn’t
    end up in a mess of covering thanks for
    your time Maria thank you to support our
    award-winning independent journalism
    subscribe to nb. co.nz

    Original article posted to NBR.co.nz on 15 April 2024. Read the article here: https://tinyurl.com/2cyb6fvu

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