The La Poste group has announced a budget cut of 50 million euros for this year, prompting the union to criticize a policy that “persistently takes from the poor.”
Published on 09/27/2024 6:32 p.m.
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The CEO of La Poste announced on Friday, September 27, that the budget cut for 2024 “clearly contradicts the interests of the public and the postal workers whose jobs are at risk,” reacted the CGT federation of employees and retirees from postal and telecom activities (CGT FAPT).
“This budget cut of 50 million euros is part of a 160 million euro reduction that has been decided, and we are going to have discussions with the State,” declared CEO Philippe Wahl at the congress of the Association of Rural Mayors of France in Saint-Julien (Côte-d’Or).
“Once again, this is about making the public bear the consequences of a liberal policy that continues to take from the poor to benefit the richest, shareholders, and the affluent class,” the CGT protested. They denounce “another blow against public service in general and the public postal service in particular.”
The union warns about “the risks to the availability of post offices in villages or neighborhoods, crucial for preserving social connections during a time of escalating social inequalities and collapsing purchasing power for the most vulnerable.” The CGT FAPT promises to make “proposals to enhance the postal service, both in terms of its financing and its offerings,” and is launching a major public campaign for the future of the public postal service.
These 50 million euros represent slightly less than half of the amount the State provides to La Poste each year, which is used to offset the financial losses of branches that are not profitable, particularly those located in rural areas, mountainous regions, overseas territories, and priority urban districts.
The recent announcement by La Poste CEO Philippe Wahl regarding a €50 million budget cut for 2024 has sparked considerable controversy. Highlighted at the congress of the Association of Rural Mayors of France in Saint-Julien (Côte-d’Or), this decision is perceived as a direct attack on public services and the citizens they serve.
“Once again, it is about making the people pay for the consequences of a liberal policy which persists in taking from the poor to give to the richest, to the shareholders, to the wealthy caste” protested the CGT (General Confederation of Labour), a prominent trade union representing postal workers and retirees.
The Breakdown of the €50 Million Cut
The budget cut comes as part of a larger €160 million initiative that seeks to streamline operations within La Poste. This significant reduction constitutes nearly half of the state compensation that La Poste relies upon annually. This compensation is designed to offset losses incurred by branches, particularly in less profitable areas such as rural, mountainous, overseas territories, and economically disadvantaged city neighborhoods.
Concerns Raised by Unions
The CGT has expressed alarm regarding the long-term implications of such cuts on public service availability. The union emphasized that postal services are a lifeline for maintaining social ties, especially in vulnerable communities. In a statement, they declared:
“This represents another blow against public service in general, and the public postal service in particular. The presence of a post office in a village or neighborhood is crucial, especially as social inequalities grow and the purchasing power of the most vulnerable collapses.”
Impact on Postal Services
The implications of losing €50 million from La Poste’s budget are profound:
- **Reduced Accessibility:** With budget cuts, many rural post offices may face closure, drastically reducing access to postal services for residents.
- **Job Security Threats:** Postal workers could face significant job insecurity as operational efficiency measures may lead to layoffs.
- **Community Deterioration:** As postal services decrease, community engagement could suffer, eroding the social fabric that connects residents.
Statistics on Postal Service Utilization
| Area Type | Annual Postal Service Usage | Impact of Cuts |
|---|---|---|
| Urban Areas | 70% | Limited Cuts Impact |
| Rural Areas | 40% | Severe Cuts Impact |
| Overseas Territories | 30% | Destructive Cuts Impact |
Future of Public Postal Services
In light of the challenges posed by budget cuts, the CGT plans to initiate a significant public campaign aimed at preserving the public postal service’s future. The union has expressed its commitment to propose improvements in funding and service delivery models to ensure the viability of postal services.
Potential Solutions and Recommendations
For a more sustainable future for postal services, the following measures are recommended:
- **Enhanced State Funding:** Establishing a more robust financial support framework for underperforming branches can help maintain service levels.
- **Community Engagement Models:** Implementing local feedback mechanisms to align postal services with community needs can foster goodwill and broaden usage.
- **Diversified Services:** Expanding the range of services provided by postal offices can generate additional revenue streams, offsetting losses from traditional services.
Real-Life Implications
The repercussions for communities are evident. In many small towns, the local post office is the heart of community interaction, facilitating not just mail delivery but also social connection. A closure or reduction in service disproportionately affects those without access to alternative means of communication or postal services.
As announced, the CGT and other stakeholders plan to move forward with advocating for reforms that keep postal services accessible and equitable, ensuring that everyone, regardless of geographic or economic status, can rely on this vital public service.
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