An Post says there will be no compulsory closure of post offices

The company has reached agreement with the Irish Postmasters' Union

An Post says there will be no compulsory closure of post offices

File photo | Image: Rollingnews.ie

An Post says it has agreed with the Irish Postmasters' Union (IPU) that there will be no compulsory closure of post offices.

It comes as the mail provider reported operating profits of €8.4m last year.

This compared to losses of €12.4m the previous year.

Pre-tax profits were close to €50m - partly due to contributions form the sale of a property and a special dividend from Premier Lotteries Ireland.

The company sold a former sorting office in the Dublin Docklands and also saw an increase in the price of stamps.

It was also revealed that Christmas 2017 was its most successful ever parcels' season.

An Post says it delivered 1.74 million parcels in the five week lead-up to Christmas - an increase of 27% on the same period last year.

The company also cut 330 jobs in its mail division.

An Post chief executive David McRedmond told Newstalk's business editor Vincent Wall: "We've actually just reached agreement with the Postmasters' Union - and we will be making an announcement probably within the next 24 or 48 hours."

"There will be no compulsory closures - inevitably there'll be some degree of consolidation, but we are coming with a guarantee of post offices within every community of over 500 people".

He also said there would be "a whole range of new services - particularly local banking - in which An Post has become almost the most important operator".

Additional reporting: Vincent Wall