Romanian Post will restructure 1,400 positions and start a bank and insurance company

The Romanian Post announced it will restructure 1,400 positions. The people working in these positions will not necessarily be made redundant but shifted to fill other jobs, according to Daniel Neagoe, general manager of the Romanian Post.

This statement comes in contradiction to what the Minister of Communications, Valerian Vreme, announced in June when he said around 2,000 employees, representing 6 percent of the total number of employees working in The Romanian Post, would be affected by this process, part of whom would be laid off. Read more on this subject here.

 A government project that was under consultation in June is that The Romanian Post will set the basis of a bank entitled The Romanian Post Bank and an insurance company called Romanian Post Insurances.

So far, the reorganization process meant the internalization of 7 profit and support subsidiaries which saw 146 management positions being dissolved and expenses with salaries decrease by RON 110,000 per month.

 Also, the Romanian Post has started the process of reorganizing its network of units. The first stage, which was already completed, saw the axing of 900 units without laying off employees. The second stage which is about to start soon refers to the dissolving of 402 subunits, 47 rural post offices which will save expenses of approximately RON 50 million per year.

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 The general manager of the Romanian Post also announced that the company is now once again on profit starting with July, due to the fact that certain contracts “signed during the governing of the National Liberal Party (PNL) were cancelled.

 “The losses posted in 2009-2010 were generated first of all by burdening contracts closed between 2007-2008 by the PNL government, which summed up approximately EUR 500 million,” he said.

 However, the press release of the Romanian Post mentions four contracts with a total value of only EUR 441 million.

These were: the contract for monetary processing and transport, closed with the company G4S (this contract with a value of EUR 350 million was suspended),  the transport of mail by air (this contract was written off starting with February 16; it had a total value of EUR 45 million), the building maintenance contract signed with UTI (cancelled on June 20) and cleaning services contract signed with Romprest (cancelled on June 20) both of which amounted to EUR 46 million.

 The Romanian Post has 35,000 employees and administers a network of 6,105 units.

 The Romanian Post posted a turnover of EUR 327 million last year and losses of EUR 29 million. In 2009, the Romanian Post had losses of EUR 43 million.

 Otilia Haraga