Letters will only be delivered in the island five days a week from October.

The switch from a six-day delivery service was confirmed by Isle of Man Post Office chairman Julie Edge this week.

The controversial proposal first received Tynwald backing in December and Ms Edge said this week that negotiations with the workforce, about implementing the change, were continuing.

’Currently the five-day letter service is targeted to come into effect in mid-October,’ she said.

’We are actively working to enhance customer collection and delivery options.

’We will be trialling parcel pick-up points, expanding corporate self-administered postage that will ultimately be available to residents, along with parcel drop boxes that have proved popular with trials in other jurisdictions.’

Giving an update statement to Tynwald on Tuesday, Ms Edge said: ’Isle of Man Post Office is transforming the business to address the challenges coming to postal operators globally, in a financially responsible way, with the overall aim of remaining self-sustaining.

’Delivering up our strategy to modernise and adapt changes in customer demand for letter mail and commer--cial products, including parcel collection and delivery, is happening in earnest.’

She pointed to successes such as IoMPO reduced costs, improved productivity and ’repositioned the business to protect services and grow profitably with the support of our employees and respective employee unions’.

Ms Edge referred to the resolution of an industrial dispute with Communications Workers’ Union, that had previously seen strike action.

deal

In May a deal was finally struck between the Post Office and the Communications Workers’ Union following a long-running dispute about pay and terms.

Union members voted to accept a revised offer from the Post Office that included a 1.5% increase on basic pay for posties, backdated to last year, and a 2% increase from April this year. Discussions on a new pay scale continue.

There was an agreement to a new pension scheme for new entrants, with existing members of the defined benefits scheme with final pension salary benefits would meet the increased future liability through increased contributions, a change in the accrual rate and the capping of pension increases in retirement.

retail strategy

Following the closure of a number of sub-post offices in recent years, the Post Office is due to come to Tynwald with a new retail strategy in October.

Ms Edge said: ’The board is proud of the Post Office’s social and economic value to the island and it is in this context that it takes the future of retail counter network services in the community very seriously.

’Changes to the retail network are inevitable. Doing nothing is simply not an option.’

warning

But she also had a warning for central government that the threats facing the Post Office could have far-reaching consequences.

’At least £1 million of government-related service revenues is at risk over the next three years if the government presses ahead with its own digital initiatives,’ she said.

That included tax discs no longer being issued through post offices, plus the end of the three-year contract for MiCard, which the Post Office does not expect to be extended.

She added: ’In the year ahead the business will continue to face trials and tribulations but I sincerely hope, collectively, by making best use of our skills, experience and knowledge, we can overcome this challenging period.’