PRESS RELEASE: Australia Post mercenaries vs. licensees: Whose side are you on, Albanese?
The gang of mercenary executives from Woolworths, McDonalds, and Subway who have hijacked Australia Post are behind today’s vicious Australian Financial Review attack on Christine Holgate and the Licensed Post Office Group, because they are resisting the mercenaries’ plan to close thousands of post offices.
The Australian Citizens Party, which has been heavily involved in trying to save post offices ever since then-PM Scott Morrison bullied Christine Holgate out of her role as Australia Post CEO, is accusing the mercenary executives led by CEO Paul Graham of taking the easiest but most short-sighted pathway back to profitability, which will boost their bonuses and future job offers but be a disaster for postal services.
ACP Research Director Robert Barwick said today: “The question is: what is the Albanese government going to do?
“The government is ultimately responsible for Australia Post, not these mercenaries who jump from business to business in search of fat bonuses and are currently vandalising the postal network.
“Is Albanese going to side with the mercenaries, or with the licensees whose resistance to mercenary executives is arguably the only reason we still have a postal network in Australia?”
Slash and burn
Australia Post is a 100 per cent government-owned Commonwealth Business Enterprise, required to operate commercially, i.e. to turn a profit, but it has suffered enormously from having executives whose only idea for how to make a profit is to slash and burn.
As emails increasingly replaced letters in the late 2000s, then-CEO Ahmed Fahour made profits by selling post office buildings to lease back, counting the sale of capital as income, and investing everything into the growing e-commerce parcels business instead of post offices.
Concerned licensees who were going broke under Fahour organised themselves into the LPO Group to fight to save the postal network.
They finally made progress when Christine Holgate took over as CEO in 2017 and restored Australia Post to profitability by expanding services, including banking services, for which she recognised that Australia Post’s network of more than 4,200 post offices was an asset, a competitive advantage.
Holgate made the LPOs viable, and when Morrison forced Holgate out in 2020, LPOG members were her staunchest defenders, calling her “the best CEO Australia Post has ever had”.
Under her replacement Paul Graham, however, who sees post offices as a cost, Australia Post is back to slashing and burning, withdrawing services from post offices and implementing mass-closures, with immediate plans to close 271 to reduce the network to the regulatory minimum of 4,000, on top of which he is lobbying for a change of regulation so he can close thousands more.
Dozens of communities like St. Kilda in Melbourne are already suffering the extreme disruption of losing their post offices.
LPOG, whose members have decades of experience in Australia Post that the short-term mercenaries in the executive suite ignore, is lobbying the government to save the network by expanding services.
LPOG has launched a petition calling for the government to allow licensees to do independent deals with other businesses who are willing to pay to use their infrastructure, as Christine Holgate allowed when she was CEO.
In response, Australia Post has dishonestly attacked LPOG and Christine Holgate using AFR today.
LPOG is also campaigning for the government to establish a public post office bank, which will save postal and banking services for all communities.
The ACP is calling on all Australians to demand the Albanese government side with LPOs and save post offices from the mercenaries.
“The survival of an essential service is at stake”, Robert Barwick said.
The Australian Citizens Party is an independent, federally-registered political party, founded in 1988. It is committed to policies that promote the economic development of Australia for the benefit of all its people, not just the vested corporate interests which have too much influence over the major political parties. It takes its inspiration from the "old Labor" party stalwarts including King O'Malley, who fought to establish Australia's national bank, the Commonwealth Bank, and John Curtin and Ben Chifley, who used the Commonwealth Bank to lead the economic mobilisation that saved Australia in WWII. The ACP fought against the privatisation of the Commonwealth Bank, which has concentrated financial power in Australia in the Big Four banking oligopoly that gouges short-term profits at the expence of Australians and the nation's economic development, and is campaigning to re-establish a national bank, modelled on the old Commonwealth Bank, as a government post office bank which would guarantee face-to-face banking services, and access to cash, for all communities, and break the Big Four banking oligopoly.
