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Austria Post says no lay-offs in 2009

Wed Nov 19, 2008 9:10am EST

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VIENNA, Nov 19 (Reuters) - Austrian state-controlled mail operator Oesterreichische Post (POST.VI) said it will not lay off staff in 2009 as part of its restructuring plan. The operator has been facing strong political and union resistance against a plan for sweeping job cuts.

There will be no mandatory redundancies next year because of a workers' social plan, valid until the end of 2009, and because enough people are expected to retire or leave, the company said in a statement on Wednesday.

The head of the workers' council told Reuters last week that the Post wants to close some 900 to 1,000 branches from a total of 1,300 and plans to lay off up to 9,000 of its 26,000 workers by 2015.

The company has said it wants to restructure more than half of its branches, turning them into partner services within other stores, rather than stand-alone post offices.

Shares in the company were 0.4 percent higher at 1400 GMT, outperforming a 2.8 percent fall in the wider Austrian market .ATX.

According to media reports, the board believes job cuts would help prepare Austria Post for the end of its letter monopoly, due in 2011, and make it more attractive for further privatisation. The state owns a 51 percent stake. (Reporting by Sylvia Westall; Editing by Richard Hubbard)



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