Australia post is making major changes with the Federal Government announcing the service will only deliver letters every second day as it struggles to remain financially viable. The move is aimed at freeing up space to deliver more parcels and priority mail.
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00:00 The Federal Government says that these changes to letter deliveries are mainly down to financial
00:07 concerns and ensuring that Australia Post remains viable and efficient.
00:12 Instead of Australians receiving letters in their mailbox every day, deliveries will be
00:17 reduced to every second day instead.
00:21 And Australia Post says that this is part of a plan to modernise their business model.
00:26 They say that letter demand has decreased drastically and daily delivery of letters
00:30 has become unsustainable.
00:33 Australia Post says the average Australian household now receives just two letters each
00:37 week.
00:38 Last financial year, the business reported a loss of more than $200 million and those
00:44 losses are forecast to continue.
00:46 The Federal Communications Minister, Michelle Rowland, says the changes are also necessary
00:51 in order to boost the delivery of parcels where demand has been booming given the growth
00:57 of e-commerce businesses.
00:59 This is a little bit of what she had to say earlier.
01:01 I commend the Communication Workers Union and Australia Post and the workforce overall
01:09 for collaborating in a way that has enabled a trial of a new delivery model, one that
01:15 has been widely embraced where it has been undertaken, but also recognises that Australians
01:23 want a better parcel service.
01:26 That is where the demand is.
01:29 Australia Post needs to invest in better models to meet those demands and also in new technology
01:36 and other ways in which consumers can be best served.
01:40 Australia Post says that these changes will allow postal workers to focus more on parcel
01:45 deliveries and that during a trial of these changes, 20% more parcels were able to be
01:51 delivered because of increases in productivity.
01:54 They say that they'll also add more parcel postage and collection points to the network
01:59 as well and also that urgent and priority mail won't be affected by these changes.
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