“Changes and Challenges in India Post”
Bruhaspati Samal
Secretary, AIPEU, Group-C,
Bhubaneswar Division
e Mail : bsamalbbsr@gmail.com
Dear President,
Distinguished Guests and my Beloved Comrades,
At the outset, I would like to convey my heartfelt gratitude to one and all present here on behalf of the Working Committee and extend a generous welcome for their kind presence in this symposium-cum Annual General Body Meeting in spite of their pressing engagements. I express my sincere obligation to the DDCE, Utkal University for their cooperation and providing this auditorium to hold this symposium.
Comrades, we are organizing this symposium titled, “Changes and Challenges in India Post” in such a time when the Postal Directorate vide its letter No. 40 – 06 / 2010 / Plg., dated 25.01.2011 addressed to all CPMGs/PMGs has directed to complete the process of closure/merger/relocation of about 9797 Post offices functioning at present in Urban areas on the plea that they do not conform with the distance condition prescribed by the Directorate for opening of new Post offices. The total number of Departmental Post Offices as on 31.03.2010 is 27360. Closure of 9797 Post offices means reduction of about 36% of the existing Postal network. We cannot accept the argument put forward by the Department justifying such mass-scale closure/merger/relocation. We are at a loss to understand why our Department is resorting to such mass-scale closures, when all other private couriers and companies are competing to canvass our customer by opening more and more outlets in the urban areas for extending their services to the doorstep of the customer. We fear that in the name of rationalization and optimization, our department is giving more space for the private companies to occupy more share in the mail market segment. Large scale closure of Post Offices and RMS offices will not only lead to inconvenience to the public leading to discontentment but also adversely affect the interest of the employees. Further this is nothing but abrupt violation of strike agreement made on 12.07.2010 in which it was categorically assured that there will be no closure/merger of Post Offices.
While we strongly protest such unilateral closure/merger of post offices, we feel it necessary to tell you that from pigeon to post, India Post has travelled a long way over 150 years. From 23,344 post offices at the time of independence to 1,55,015 post offices as on 31.3.2009, India Post has made a long journey. Being the largest postal network in the world with one post office serving 7175 people and covering an area of approximately 21.2 sq. kms, it provides postal facilities within reach of every citizen in the country at affordable prices with recorded delivery of 1,575 crore mails every year. Long before the times of email and mobile phones, pigeons, barefoot runners and bullock carts were used to carry messages from one part of India to another. The mail-runner in earlier times not only carried people's messages but they also carried their emotions and hopes. They used to write and read out letters for people. They had a simple lifestyle compared to their British bosses and were the real backbone of the postal system.
But the days are gone. The postal department is now facing competition due to emergence of electronic alternatives, more demanding customers, presence of organized / unorganized couriers for mail conveyance, financial players like banks and insurance companies and above all the challenges of globalization, corporatization and liberalization. Thus, to meet the challenges and to face the competitors on one hand and to prove itself as an efficient and reliable communication network as the main component of the communication infrastructure for playing a crucial role in the socio-economic development and integration of the country on the other, the Postal department is doing a lot of things other than just delivering letters aiming for a transformation with re-engineering of Business Processes and making it compatible to suit the new ICT solutions and evolving new processes based on customer needs. National Postal Policy has been formulated to develop services that assist, facilitate, enhance and quicken the process of development aimed at inclusive growth and to reposition India Post to become a self-sufficient, credible, efficient, quick and cost–effective provider of these services. Thus, it is just trying to do more than what it can to stay relevant today. Undoubtedly, it is a big challenge for the Department.
Briefing the Department’s long journey from pigeon post to e-post, we can recall that the Department of Posts actively entered into the digital era through counter mechanization installing 102 personal computer-based MPCMs in 22 selected post offices during the year 1990 – 91 and conceived the Project Arrow concept in April, 2008. During 2008-09, 45 post offices were computerized, computer hardware was upgraded in 1847 post offices and 500 post offices were modernized under Project Arrow. During 2009-10, 2920 post offices were computerized, computer hardware was upgraded in 92 post offices and 500 post offices were modernized under Project Arrow. As on date, Out of 25531 departmental post offices, 12604 POs including those in the rural areas have been computerized. 1304 Post Offices have been networked through leased lines so far with the National Data Centre. Further 5170 Post Offices have been networked through broad band. The XIth Plan proposal includes computerization and networking of remaining 10841 departmental Post Offices and all the 129553 Branch Post Offices.
To meet the challenges, India Post has revolutionized the way it used to function before adopting varieties of products and services starting from selling of movie tickets in urban area to agriculture insurance in rural area. For providing Any‐where, Any‐time and Any branch banking, Core Banking Solutions (CBS) has been included in the 11th Five Year Plan with a financial outlay of Rs. 106 crores for development of CBS software and other related activities. To cater the needs of NRI dependent families in India, visiting International tourists and foreign students studying in India, the Department in collaboration with the Western Union Financial Services, USA operates International Money Transfer Service through the post offices in India which enables instantaneous remittance of money from 185 countries to India. In January 2006, an on‐line web‐based domestic money transmission service called i MO was launched which enables the customer to receive money in minutes from any of the 2175 identified post offices for the purpose. The electronic money order, i.e. e MO which has been launched in October 2008, facilitates transmission of ordinary money orders from 8003 post offices through electronic media without any extra charge. e‐Payment is a 'Many to One' service through which bills and taxes etc. are paid by customers in 8457 Post Offices across the country and will soon be extended to all 12604 computerized Post Offices. The Department of Posts introduced ECS scheme on 9th August 2003 which facilitates depositors to get MIS interest automatically transferred and credited into their SB account on the due dates at the designated Bank of their choice.
The Department of Posts is also emerging as a potential service provider to other organizations. Ministry of Statistics and Program Implementation (MOSP) has entrusted the job of collecting statistics for ascertaining the Rural Price Index from 1183 post offices across the country with effect from Oct 2009. Railway Ministry and the Department of Posts have signed a memorandum of understanding for providing railway ticket booking services at the post offices. The Department of Posts is discharging the responsibility to disburse the wages to NREGS beneficiaries through Post Office Savings Bank account. Currently operational in 19 Postal Circles comprising of 21 States, the scheme is operational through 90,000 post offices. The Department of Posts in collaboration with NABARD is providing the facility of micro‐credit to Self Help Groups (SHGs) through identified post offices on agency basis. Department of Posts has signed an agreement on 17.9.08 with ICICI Prudential Life Insurance Company Ltd. to retail their Pension Products through select Post Offices on Referral Model. India Post introduced a new international air express service known as World Net Express on 26.11.2008. The service is available at selected post offices for more than 220 countries. India Post has tied up with State Bank of India to sell its assets and liability products through identified post offices. Old Age Pension is being paid through Post Office Savings Accounts and Money Orders. As a tie‐up with Reliance Money Limited, sale of gold coins has been launched on 15th October, 2008 as part of retail post in selected post offices. The Department of Posts has been assisting other public authorities under the Central Government in implementing the RTI Act by providing services of its designated Central Assistant Public Information Officers (CAPIOs). For this, Sub Post Masters at Tehsil level act as the Central Assistant Public Information officer (CAPIO) for accepting RTI requests and appeals from all central Government Departments. Under a partnership with Deutsche Post, Money Order Videsh was launched by India Post on 24.10.2009 to facilitate remittances to foreign countries and receiving of remittances from foreign countries through Post Office.
Thus, as a result of these challenges, all operational, administrative and accounting units of this vast organization are being affected with new management system. The Circles, Regions, Divisions and Post offices are dealing with implementation of multiple solutions. Therefore, employees from all levels are inducted to the changes for capacity building, augmenting training infrastructure, achieving computer literacy at all levels etc. to run a massive change management plan.
But while analyzing the process the Department adopted to meet the challenges, we find the following shortcomings.
The Department does not find any financial autonomy and commercial flexibility to respond to market forces quickly and efficiently. As we have experienced, in spite of serious debates inside the Parliament even, the rates of interests in Post Office Small Savings Schemes could not be enhanced since 2003 and remained unexpectedly low than its financial competitors affecting the S B transactions from which the Department earns more than 40% of its total income. The voice of the Staff Side also could not bring any change in this regard to attract the customers.
The National Postal Policy broadly speaks that urban postal and financial services are essential in order to maintain the flow of funds between urban and rural residents and it is necessary to ensure safe and quick transmission of moneys. Since the competitors for such urban services are aggressive and efficient private players, India Post should enhance and improve its delivery of urban services in order to offer comparative standards of performance. But contradictorily, it is seen that recently, the Department of Posts has issued order for rationalization of postal network in urban areas by way of relocation / merger of 9797 single / double handed post offices as I have told earlier. It is not understood in which way it will help the Department in meeting the future challenges.
India Post aims at providing new and better services on par with global industry standards by computerizing and networking of all post offices using Central Server based system. The computer literacy programme only aims at imparting training on different modules / packages in operation by the Department. Barring the new entrants, most of the senior officials do not know the fundamentals of computer. There is no plan to redesign the computer training programmes.
The Technology Wing and Business Development Cell are neither managed by the Department by Technically and Management qualified personnel nor there is a plan for direct recruitment of such personnel from open market.
The basis of any policy of sustainability and growth, especially of labour intensive activities, is the productivity, capacity and morale of its personnel. But as we realized the employees at grass root level, especially the Group-C employees of the Department who are directly responsible for smooth implementation of all the policies and decisions are highly depressed. We have witnessed that increased productivity and higher performance are not receiving appropriate incentives in the Department and the interests of the workforce of India Post are not being safeguarded. The demands of the Staff Side with scientific approaches to meet the future challenges are either overlooked or totally sidelined and the department is blindly going ahead with unscientific proposals.
As you know, in the name of transformation of India Post, the Group-C postal employees are being exploited seriously. While we are attending the office in time, the return time is not known to us. There is no fixed duty hours now. All the Head Post Offices and Project Arrow Offices are functioning till late night since not a single such office is functioning with full staff strength. In addition, the posts of GDS Stamp Vendors were abolished without accessing the workload of the office as a whole and thus increasing the workload of the Group-C employees. Computerization is being done without accessing the ground realities. The introduction of speed post hubs without taking into account the ground realities has resulted in abnormal delay in transmission and delivery of speed post articles and thereby eroding the faith of the general public in the speed post system itself. We regret to note that the staff side has been totally sidelined and the department is blindly going ahead with unscientific proposals of the multinational consultancy called Mckensy. Much damage has been done and it is high time that a thorough review be conducted for removing the deficiencies by rolling back to the old scheme.
The new Recruitment rules for the Postmen notified recently by the Department snatch away the right of the Gramin Dak Sevaks to get appointed against 50% of the Postmen vacancies. In addition to the existing discrimination in payment of bonus to GDS, unilateral orders have been issued restricting the compassionate appointment of GDS to 10% of the vacancies and tightening of norms for cash handling and stamp sale etc. In spite of the assurance given by the Secretary, Department of Posts on 12.07.2010, many issues mentioned in the 13th July strike Charter of demands and also in the minutes of the JCM Departmental council meeting held on 27.08.2010 still remains unsettled. The issue of cadre review, even though assured to be completed before November 2010, is still in the initial stage and formal discussion is delayed indefinitely. The Department is going ahead with the proposal for decentralization of postal Accounts work in the name of accrual based accounting system. Similarly move is on for decentralization of PLI / RPLI work. Induction of new technology in accounting and providing online facilities at post offices shall lead to centralization and not decentralization. The revision of wages of the causal, part-time contingent employees with effect from 01.01.2006 is pending for the last three years. Further the work done hitherto by the casual, part time and contingent employees are indiscriminately outsourced and large scale reduction in the wages are ordered. All this has resulted in making the life of the poor, low paid employees more miserable. It is high time that justice is done to this most downtrodden and marginalized section of employees of the Postal department.
All the above issues are agitating the minds of the Postal and RMS employees and resentment among them is mounting day-by-day. The releasing of the orders for closure of large scale post offices has further aggravated the situation. Unless the Department comes forward to discuss the above issues with the Staff side for an amicable settlement, the situation may go from bad to worse. As such, expressing concern over all these issues, Com. M Krishanan, our beloved Secretary General, NFPE has appealed the Govt. of India and Secretary, Department of Posts to desist from the move to implement the retrograde orders take the staff side into confidence so that the peace, tranquility and better relationship between the staff side and administration shall remain unaffected failing which we will be compelled to resort to trade union action including indefinite strike.
The rights to organize and bargain collectively for fair wages and conditions are cornerstones of any democracy and removing these rights means democracy itself is under attack. Economic growth without workers rights, social protection and a voice in decision-making does not amount to development. Growth needs to be broad based inclusive and sustainable in which all people can take the benefit from the proceeds of the prosperity and in which even the poorest have access to the opportunities. That's the sort of growth that requires not only entrepreneurs, but trade unionists. Fundamentally, developments must also be about improving people’s ability to shape their own lives. Through union organizations, workers can have a more effective say not only on wages and conditions but also on wide range of policies which have an impact on their lives.
So to meet the future challenges, the Department should take the Staff Side into confidence unconditionally and proceed ahead taking all decisions in tandem with a greater focus on human resource development . Then only, the commitment of India Post to meeting the challenges of the economy and to ensure connectivity, communication and financial services to every citizen can only be found feasible.
Before I conclude, it is my sincere appeal to the Hon’ble Member of Parliament and Member of Odisha Legislative Assembly present here to strongly protest this unilateral proposal of Postal Directorate for closure / merger / relocation of 9797 post offices in which Odisha Circle may sacrifice as many as 400 post offices and since the urban areas have been targeted, the capital city of Bhubaneswar may lose as many as 25 post offices inviting serious dislocation in mail delivery of this vast growing city.
Thanking you all.
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