Business

Post offices under pressure as parcel business rises

Australia Post franchisees say their businesses are under pressure to survive because of the small sum they are paid to sort and deliver parcels.

The Licensed Post Office Group (LPOs) said there had not been an increase in the sorting rate since 1993.

The franchisees get just 29 cents per parcel.

Group member Angela Cramp said a fall in the number of letters for delivery has been replaced by a big rise in parcel business, because of the popularity on online shopping.

She said the rate of payment was not enough to cover operating expenses.

We are 75 per cent of the Australia Post footprint. We are the best asset that Australia Post has and we are the most undervalued part of their network, she said.

They cannot hope to service Australia-wide without the LPOs — via redwolf.newsvine.com

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