After weeks of negotiations – and in the background of the postal company’s most difficult financial situation, for which a live business note has already been recorded – the Ministries of Communications and Finance reached agreements tonight (Thursday) with the postal administration and employee representatives towards full privatization of the Israel Post.
The parties’ agreements include a plan to streamline and reduce wage costs, accelerate the transition to digital services, deliver packages with high accessibility, a dedicated service for older populations, re-retirement of postal services, and promote competitive conditions in the postal market.
The company’s employees were involved in the complex process of rehabilitating the company and privatizing it out of concern for the company’s future, while the Israeli government ensured fair retirement conditions for retiring employees and business certainty for the remaining employees in the company.
The Minister of Finance, Avigdor Lieberman: “The privatization of the post office is a necessary and very courageous step that brings with it a large number of Israeli citizens who use the postal services. Efficiency, innovation and digitization were the guiding principles during this and I thank my friend the Minister of Communications, Yoaz Handel, for the fruitful cooperation and hard work that produced a real revolution. We will continue to lead a policy of free economy and competition alongside better service to the citizens of the State of Israel. “
Communications Minister Yoaz Handel: “After years of neglect, we are doing vital root canal care for the post office. It is well known that the post office suffers from diseases that have not been treated for years, such as an excess of manpower, inefficiency that every citizen has felt in his flesh, and regulation that has burdened society. To date, the state has poured millions into the postal company whenever the company has been in difficulties and this without addressing the challenges and administrative and organizational problems of the company. Today begins a new era in postal services in Israel. There will be difficulties along the way, but at the end of the process the public will enjoy excellent and advanced postal services. ”
Mishael Vaknin, Chairman of the Israel Postal Company: “There is no escape from the difficult steps that will be taken. Saving the postal company is a national task that affects every citizen. The road will not be easy, but we are determined. As part of the recovery process, we will have to part with about 1,500 workers by the end of 2023. This is not an easy thing, certainly for many workers for whom the post office is a home. But we have no choice. The next goal for securing the company’s future is an IPO and full privatization as soon as possible – as decided by the Ministers of Finance and Communications.
The company’s elected CEO, David Laron, will formulate the company’s new work plan in the coming months, and he will lead the mail to an era of innovation and excellence in service, while stabilizing it financially.
I would like to thank Communications Minister Yoaz Handel and Finance Minister Avigdor Lieberman, CEOs Liran Avishar Ben Horin and Ram Blinkov and their staff, for their courageous decision to face the crisis in the mail, after years of ignoring the situation.
“Israel Post employees are dedicated people, who do their work under difficult conditions and are the ones who will lead the change we are all aiming for – accessible, technologically advanced and customized postal services.”