NZ Post has confirmed its plans to lay off hundreds of staff over the coming years as mail volumes decline.
The company said it plans to progressively stream mail into its parcel network, which they hope will create a sustainable and cost-effective service through one network.
NZ Post announced in June 2023 they will be consulting on reducing the number of roles, with around 750 to go over five years.
It had around 4500 employees.
They had consulted employees, unions and engaged with transport and delivery partners since October 2023 before confirming the decision.
Twenty years ago, Kiwis sent over 1 billion mail items a year. This has decreased to 220 million currently, and NZ Post projects this will further decrease to 120 million items by 2028.
NZ Post chief executive David Walsh said: “The way we deliver mail in the future will look very different and we know our future workforce won’t be the same size and shape as it is today.”
“This decision means that there will be significant job losses in existing mail delivery, processing, and support roles.
“Since this is a long-term plan, no employees are directly affected by the move to one delivery network right now and our focus is on supporting our people with this change.”
Walsh said the plan means mail and parcels will eventually be delivered by one person, rather than a separate postie and courier.
He added there is “nothing New Zealanders need to do differently” to receive mail.
"NZ Post is going through a period of transformation, as we continue to respond to the ongoing decline in mail volumes while supporting future growth in e-commerce, as we chart a path towards commercial sustainability."
Unions respond
The Postal Workers Union of Aotearoa has provided a counter proposal to maintain a network of local posties who drive electric cargo bikes and motorcycles.
It accused NZ Post of wanting to have mail delivered by contract couriers driving vans.
"Contract couriers have neither the rights of employees like the minimum wage and annual leave, nor the rights of genuine independent contractors who can chose their working hours," the union said.
"The Union believes the NZ Post proposal to lay off all its posties and increase its contractor workforce may breach the second principle of the State Owned Enterprises Act – 'a good employer is an employer who operates a personnel policy containing provisions generally accepted as necessary for the fair and proper treatment of employees in all aspects of their employment...'"
Meanwhile, the E tū union said passing the buck to contractors will incentivise money making, rather than providing the best service.
"We see examples of this across many different industries.
“Mail delivery volume might be declining, but a robust network remains a core part of our society’s infrastructure.”
It added the impacted workers are still looking for answers.
The Postal Workers Union believes that the non-negotiable ‘take it or leave it’ Owner Driver Agreement contracts that NZ Post requires its couriers to sign may be unlawful.
The Employment Court has already observed that some employers label individuals as contractors to avoid any responsibility for employee rights such as holiday pay and minimum wages.
The Union has a case beginning in the Employment Court on July 15 seeking a declaration from the Court that NZ Post’s contract couriers who are Union members are in fact employees by "the real nature of the relationship" with NZ Post - Section 6(2) of the Employment Relations Act.
Under the Act, the union claims for an SOE to be a successful business it is not only required to be “as profitable and efficient as comparable businesses not owned by the Crown”, but must also exhibit “a sense of social responsibility by having regard to the interests of the community in which it operates and by endeavouring to accommodate or encourage these when able to do so”, and be “a good employer”.
The union said it has written to the Minister for State Owned Enterprises Hon Paul Goldsmith about how NZ Post’s proposed restructure may not meet the principal objective under the State Owned Enterprises Act to be “a successful business”.
Earlier this month, the union said replacing posties with couriers will slow deliveries.
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