Combined meeting of Service Unions called by Chief PMG

A combined meeting of all the service unions of this Circle was called by Chief PMG in the wake of the directive of the MOC to attain revenue growth to the extent of 25% over last year’s performance and also in the light of the 100 days programme announced by the MOC. Myself along with Sri. T.M Krishnaswamy represented our Association. Such a fast track programme has become essential as we are now facing an alarming situation where the department’s deficit has become equal to its revenue and the reduction in deficit last year was only to the extent to 11% and as such there is an urgent need to wipe out this large deficit of over Rs 6000 crore.

Chief PMG at the outset gave an overall picture of the present scenario highlighting the position of Kerala Circle. It was pointed out that Kerala’s revenue deficit was no different from that of the whole country. In 2010-11 our revenue including SB/CC was Rs 363/12 crores while our deficit was a staggering Rs 293.19 crores. It is evident that we have to literally double our net revenue this year if we have to make a significant difference and to reach anywhere near the target given to us by the MOC. Chief PMG stressed the need to rationalize our expenditure and closely monitor the bulk mailers to prevent any leakage of revenue as one penny saved is equal to a penny earned. Madam also reminded us that nearly 1000 newly recruited PAs/SAs would be joining the department this year after training which would further add to our existing costs.

The performance of the Circle in the first quarter of this current financial year was capsuled before us to show us where we stood. Only 79.25% of the revenue target has been met till now. Performance in increasing SB live accounts and in generating PLI/RPLI policies has not been very good till date. In the premium business segment also, the overall growth achieved is insignificant despite some growth in the Speed Post segment. It was therefore pointed out that we are not likely to achieve either the annual or 100 day targets given to us unless the entire Circle makes a major effort to do so.

The following areas of challenges which required to be overcome were pointed out:

(i)At present there is an over-dependence on money orders to boost our revenues. MO commission has been the backbone of our performance in the traditional revenue stream. However, this revenue stream is very vulnerable to Government policies and hence there is an urgent need to broad base and widen our revenue generating opportunities.

(ii)Our revenue from BD or premium products is very meager compared to overall revenue and also to other states (only 31.67 of the overall postal revenue in contrast to 80.64% of TN, 61.83% of Karnataka). We have to find means to increase our revenue from BD or premium products so that atleast 50% of our total revenue comes from our premium & Value added products.

(iii) The situation calls for raising the benchmark in SB also. Other Circles have made up the gap in revenue target and achievement by increasing their SB live Accounts. But our Circle showed only very marginal growth in this segment last year (5%) viz-a-viz other major circles. Over dependence on agents, occurrence of frauds, unwillingness on the part of the departmental offices to open new accounts, competition from banks etc are all challenges which we need to overcome.

(iv) With the widespread computerization of Pos, we have now reached a position whereby we are equipped to provide an array of e-services. However, this potential is not exploited to the maximum. There is an urgent need to identify new customers and tap the immense opportunities which are lying in this segment.

(v) Much remains to be done in the area of RPLI. With self help groups becoming a major instrument of economic empowerment in the state in segments which were traditionally our market, it is sad that we have not exploited this opportunity adequately especially in areas catered by the Departmental SOs.

(vi) There is also a need to increase the quality of our services both across the counter and also in delivery. Newly introduced products are often not provided to the customers and value additions are ignored which tarnishes the image of the department and its services. The basic outlook and attitude needs a radical change.

(vii) Our main strength lies in the large retail network of 5068 Pos which gives us a presence in every village in the state, a network so wide which no other organization can even dream of. However, it is a startling reality that most of these Pos are today running at a loss (4%) while approx: 20% earn more than PLL. As against the mistaken belief that as per Govt. policy every PO is required to earn only 33 1/3% of its revenue (15% in remote areas), the fact is that every urban PO has to earn revenue to the extent of at least 5% more than its costs while SOs in rural & remote areas can incur loss only to the extent of Rs 2400 & Rs 4800 per yeas. Therefore there is a major challenge in our Circle to leverage the network and make it viable.

In the above backdrop, Chief PMG appealed to all the Unions to exhort their members to help the Circle achieve its goals by addressing the various challenges mentioned above and also the targets given to the Circle. Madam requested to conduct special drives in RPLI/SB so as to help us to achieve the targets within the limited time available. All the Service Unions unanimously decided to extend all possible co-operation and support to the Circle Administration in the said venture.

All the members are requested to extend all support and co-operation in this joint venture and contribute in whatever possible way they can so as to enable Our Circle to pull up its performance and to continue to rank among the better performing Circles in the country and contribute substantially to reduce the deficit of India Post. SB and PLI/RPLI are two segments which can help us meet our short term goals. As such, the Association calls upon all its members to open a new SB/RD Account in their neighboring PO. Let every IP/ASP of Kerala Circle have an account in the Post Office. All the members are also requested to take a fresh PLI policy if the maximum limit of ten lakhs has not been already exhausted. Such initiatives can contribute to our cause in a big way. A positive response is solicited from all the esteemed members.

Circle Secretary