An Post report loss of €6.5m in 2001
An Post is to report a loss of over €6.5m this morning when it publishes details of its annual report.
The state postal service is blaming considerable pay increases among its 11,000 staff for dragging it into the red.
The loss comes despite an increase in turnover to over €620m, and is attributed to an 11% jump in operating costs.
The biggest increases came from wages for staff and postmasters, which rose by 12%.
While the company remains in a healthy financial position, the outlook for the near future is not great.
An Post expects to lose €15m this year, and to show further losses in 2003.
At a time when it's facing increased competition from the private sector, the company is also facing opposition to its plans to cut 1,140 jobs before the end of 2003.
