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No post office will be closed, Magyar Posta expects long-term benefits from package delivery system development, but would also move with other service providers. They are down 10 percent this year, and there has never been enough money for developments, said György Schamschula, CEO of Magyar Posta Zrt., In an interview with Népszava on Wednesday.
In the interview, the CEO explained that the salary increase will cost the company approximately 8 billion HUF this year. According to him, the company has a poor cost structure: personnel costs account for 70 percent of its expenses, while for the Austrian Post, for example, this figure is only 50 percent. “That is why the government had to ask for help to increase the differentiated base salary of 8 percent on average in August, so the post office was in a deficit operating level,” the general director told the newspaper.
György Schamschula also spoke about the fact that there is currently no labor shortage, as stated: in a large company of 27-28 thousand, 80 vacancies are due to natural fluctuations. “Classically, a ten percent salary increase would require an increase in prices or an increase in efficiency. The limitation of price increases is that on the retail side, the price of universal service can only be increased with the rate of inflation. 2-3 percent, and traditional mail traffic decreases, and the reality of the market limits price increases ”, explained the manager.
Regarding the holiday sales, the CEO said that Magyar Posta had closed all of its resorts, but that some of the properties were still in its possession. “They were in a very dilapidated state, their occupancy was low, they brought the company a loss of 100-200 million a year, and they would have had to spend twice as much on their renovation.
Regarding the effects of the coronavirus epidemic on the company, he said that sales of traditional products, payments with letters and yellow checks fell between 3 and 5 percent annually, but fell more than 30 percent in April. “In the first half of the year, this resulted in a loss of revenue of five billion, to which must be added the billions spent on defense. With the delivery of Christmas packages, all losses will be returned,” added György Schamschula, who said a 10 percent year-on-year decline in revenue is expected.
“The biggest problem for the post office is that it has a national network of 2,600 points that needs to find the right structure since the maintenance costs are very high. We have decided not to close the post offices, but to rethink their operation and simplify as well. our product portfolio “. – said the CEO.
He said about the renovations that last year 65 post offices were renovated for almost 500 million florins, this year hundreds of millions could be spent to renovate 25 locations. As has been said, they want to “give life” to post offices, for example, concentrating here also the customer service points of other providers.
He also pointed out that the company’s mail infrastructure is not efficient for sending packages and that there are 260 package processing points in the country. “The current logistics market growth rate is 15-16 percent and is expected to remain at least ten percent annually over the next decade. Country,” he added, noting that the center was still looking for a location in the southeast area of Pest.
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