O'meally-NelsonTHE BOARD of directors of the Postal Corporation of Jamaica Limited, the Government Company mandated to oversee the operations of the island's postal services, has expressed full support for the Postmaster General (PMG), Dr. Blossom O'Meally-Nelson, and the management of the Post Office, in relation to controversy surrounding a court case against the Postmaster General.
The Board was formally convened by the Minister of Commerce Science and Technology, Phillip Paulwell, on March 27, 2003 and mandated to increase the efficiency of the Post Office and oversee its modernisation and commercialisation. The board has been instructed by the Minister to eliminate within two years, the present annual losses of J$300 million.
The board held its first monthly meeting on Tuesday, April 29, 2003 and reviewed issues relating to the lawsuit brought by Moore's Transport Services as well as recent tensions between certain trade unions and the PMG.
The Board expressed full support for the PMG noting that in relation to both issues she has simply sought to carry out her duties under the law and the mandate given to the Post Office, and has acted with professionalism and integrity, while respecting the role of the unions and the rights of the employees
With respect to the lawsuit brought by Moore's Transport Services against the Postmaster General, the board understands the facts to be as follows:
1. Mail and staff transportation costs to the Post Office are now in excess of $112 million dollars per year and represent one of the most inefficient areas of expenditure of the Post Office. The actual contracts with the existing mail contractors expired in 1996 and the Post Office has since then been attempting to comply with the regulations of the National Contracts Commission for a competitive process of bidding. The Auditor General has also consistently called for the Post Office to regularise its affairs in this area.
2. Most of the existing mail contractors are represented by Moore's Air Express Services Limited/Jamaica Mail Express Co-operative/Moore's Transport Services Limited (the "Moore Group"), which has successfully opposed attempts by the Post Office since 1996 to conduct a competitive tender process. The result has been that the existing contracts continue to be extended, at constantly increasing costs, as no new contractor can be retained without a completed tender process.
3. In 1996, the tender process began on May 25, and 120 tenders were received. The Moore Group vigorously objected to the entire process and the tender was never completed. In December of 1998, the Post Office tried again, and again the Moore Group lodged a formal objection, alleging that their representative arrived five
minutes before the closing time. Even though the account of the Post Office staff was that Mr. Moore had arrived late, the tender process was again abandoned and the matter not contested. In 2001, the Post Office tried a new approach, that of establishing a joint venture for the transportation of mail and tenders were invited from joint venture partners. Seven companies expressed an interest but the Moore Group lodged an objection and the process was eventually abandoned. In September 2002, the Moore Group again objected to new plans for a tender process.
4. In all of the above situations, the Post Office abandoned the tender process, at great cost to the nation, and declined to contest the challenge or ex parte injunction taken out by the Moore Group. The result has been a continuing series of extensions of the mail contracting services held or represented by the Moore Group since no other contractor can be employed unless the tender process is allowed to be carried out. Additionally, the Moore Group has successfully lobbied and obtained significant increases in the amount paid to the existing contractors including a guaranteed 30 per cent rate of return, after costs. The Post Office previously paid out approximately $60 million dollars annually for mail/staff transportation services and now pays in excess of $112 million per year.
5. The current tender process began on January 13, 2003 and was projected to be concluded at 3:00 p.m. on February 3, 2003. At the tender briefing held on January 22, 2003, it was made expressly clear that there was no discretion to receive any tenders after 3:00 p.m.
6. The evidence of six persons, including independent policemen, and the representative of the National Contracts Commission, is that the representative of the Moore Group arrived late, as happened in 1998, and after the tender process, and the box, had been closed. Over 106 tenders had been received by this time, and at least two other persons who arrived before the Moores had noted that they too were late and left without being able to submit their own tenders.
7. The representative of the Moore Group then attended the tender opening process at 4:00 p.m. and took detailed notes of the contents of the other tenders which had been presented.
8. The Board is of the opinion that the Post Office staff had no discretion whatsoever to reopen the tender process and accept the late tenders presented by the Moores as this would have breached the established guidelines, and possibly prejudiced the entire process. Accepting the late tenders would also have been unfair to the other persons who were also late and left without having their tenders accepted, as well as to the owners of the 106 tenders which have been revealed. The Board, therefore, fully supports the continuing decision of the Post Office to reject all late tenders.
9. Once again, as in the past, the Moore Group immediately applied for an injunction restraining the tendering process and, once again, has succeeded in temporarily having the tender process suspended and in having the existing contracts extended. This time, however, the Post Office supported by the Postal Corporation Board, is determined to see the matter through. The Board takes seriously its mandate from the Government of Jamaica and its responsibility to the other tenderers and the people of Jamaica and will do what is necessary to achieve the best value for taxpayers' money.
10. In any event, the Board is giving careful consideration to a report from the British Postal Consultancy Service, which has recommended alternative and more cost effective mail transportation strategies including the Post Office owning its own fleet of vehicles and employing its own drivers.
11. The Board, therefore, considers the actions of the Postmaster General to be fully justified and consistent with her obligations. The Board rejects the allegations of bias or personal vendetta levelled against the PMG, as the ongoing conflict between the Moore Group and the Post Office predates her employment in 2000 and has existed since the original mail transportation contracts came to an end in 1996.
With respect to the reports of labour unrest and conflict with certain Trade Unions, the Board understands the facts to be as follows:
1. Post Office staff were employed on a shift system which had a number of them ending work at 11:00 p.m. and accordingly being transported home by vehicles operated by the Moore Group.
2. The volume of work at the Post Office did not justify the staff having to work on this very late shift and it was generally agreed that leaving work at this hour posed both a security risk and a general inconvenience for staff. In addition to this, it was clear that significant savings would be achieved for the Jamaican taxpayer by allowing staff to go home earlier and giving them a transportation allowance, as is done in many other government departments.
3. With this apparent win-win option in mind, the Post Office management and the Trade Union delegates discussed the matter and reached a unanimous agreement whereby the 11 p.m. shift staff would be moved to an earlier shift, from 12 midday to 8:00 p.m., and be given individual taxi fare to take them home. In dealing with the Union Delegates directly, the Post Office management was of the opinion that it was in effect going through the Union in agreeing to these terms. 4. The only entity which did not benefit from the arrangement was the transport contractor, the Moore Group, whose services were no longer required.
5. Certain Unions objected to the arrangements stating that their hierarchy should have been contacted directly and that the matter should not have been negotiated with the Union Delegates at the work place. Subsequent meetings were held with the Unions and it was also agreed that a slightly higher transportation allowance would be paid. The Unions also insisted that the staff should work later, from 2:00 p.m. to 10:00 p.m. When this was reported back to the staff, they in turn insisted that they preferred to leave work at the earlier and safer time of 8:00 p.m. 6. Again, however, the Unions have objected to the staff leaving work at 8:00 p.m. and there is now a direct conflict between the staff's desire to leave earlier and the Union insistence that they leave work at 10:00 p.m. The staff have, therefore, signed a petition which has been sent to the Post Office management and the Unions, making it clear that they intend to work the 12:00 noon to 8:00 p.m. shift as they see no benefit whatsoever to working later. There is no unrest at this time, but unrest is likely if the Unions demands are implemented. The PMG has therefore written to the Jamaica Confederation of Trade Unions, seeking their assistance in resolving the dispute between the staff and the Unions.
7. The Board is satisfied that the Postmaster General and the Administration of the Post Office have acted in the best interest of the Post Office and the staff throughout this matter and fully supports her actions. The Board Chairman was present during the meeting with Minister Paulwell, the Trade Unions and the Union Delegates, and the Board is satisfied that at no time has the Postmaster General contravened the instructions of the Minister as alleged in certain press reports. The Board is also satisfied that at no time has the Postmaster General engaged in acts of "union busting" nor has she ever suggested that workers should work from "12:00 midnight to 8:00 a.m." as alleged in certain media reports. 8. The Board takes seriously its mandate from the Government of Jamaica to remove the burden on taxpayers now imposed by the Post Office's current J$300 million dollars per annum deficit. This simple change in the shift system has resulted in a savings of over $7,200,000.00 per year. The Board will, continue to explore all available options to achieve the best value for the Jamaican taxpayers' money, including mail and staff transportation services. The Board also respects the important role of the Trade Unions and supports harmony between workers and management and the safety of the workers.
