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Jamaica Postal Service workers face job cuts

Published:Tuesday | June 29, 2010 | 5:08 PM

Nearly 1,000 workers could lose their jobs at the Postal Corporation of Jamaica and the Post and Telecommunications Department when proposed legislation is effected to establish a statutory body to replace the existing loss-making entity.

Postmaster General Michael Gentles told a meeting of Parliament’s Public Accounts Committee today that a new leaner organisation will provide jobs for only 1,400 of the current 2,300 persons now employed by the government body.

Taxpayers have had to be subsidising the Postal Corporation at a cost of $1billion annually.

With increased rates for postal services taking effect in March, revenues have jumped by about 50 per cent, but according to Gentles, projected losses for the entity are approximately $500 million.

He said capital injection of some $350 million is needed to carry out repairs to offices to acquire equipment.

Insisting that there is an urgent need to revamp the current postal services,

the postmaster general described the current operations as archaic, pointing out that it could not compete effectively with other players who provided similar services.

Committee member Dr Maurice Guy argued that while the government failed to introduce new legislation aimed at regulating the industry, other

players are benefiting at the expense of the Postal Corporation of Jamaica.