Latvian Postal Service council steps down

Members of the Council of the Latvian Postal Service (State JSC “Latvijas Pasts”) have announced their resignation, indicating that cooperation and communication with the Ministry of Transport has reached an impasse and is not directed towards constructive work, Latvijas Pasts announced on February 7.

Explaining this step, LP that competition in the sector also encourages changes in the company, so work on the development of the new strategy project has been ongoing for more than a year. The course is designed to change the existing business model and improve the company's processes to meet the specificities of today's industry and the current needs of society, as well as improve the company's financial performance.

The Latvian Postal Service (Latvijas Pasts) had decided to close or reorganize 105 of the 176 post offices across the country but later suspended the plan. Beāte Krauze-Čebotare, head of Latvijas Pasts, said that as the number of letters and subscribed press decreased, the postal service was in a financially difficult situation. 

Responsible officials of the Ministry of Transport were involved and continuously present in the development of the strategy, as well as representatives of the Ministry were informed about the reorganization of the Latvian postal network.

"That is why the form, style, and channels of communication chosen by the Transport Ministry in recent weeks, not dealing directly with the company but making matters public on social networks, are outrageous and incomprehensible. Equally unexpected was the [..] minister's demand to explain the cost of the company's best employee award event, which had been previously seen and accepted by the Ministry of Transport," the statement from Council members stated.

The Council members Raimonds Dūda and Ivars Blumbergs said they saw an opportunity to develop and create Latvian Post as a modern and successful company.

“There is much discussion in the public space about Latvia's national economy lagging behind other Baltic States, the low productivity and productivity of Latvia. In order to achieve the result, everyone, including the Latvian Post and society as a whole, needs to change and improve. No one else for us will. The transformation of post offices with very limited customer visits and the provision of postal services in a rational manner is the most direct step in reducing the lagging of the Latvian economy.

“If the political stage is more substantial and there is no courage to implement unpopular but important decisions for the future of the company and the Latvian economy, then we do not see an opportunity to continue to perform the duties of members of the Latvian Postal Council,” the statement says.

However, Transport Minister Kaspars Briškens said on the social network X on February 7 that the council had stepped down after questions had been asked regarding the council's spending.

"Upon launching a service investigation, we have found that at a time when the postal service is in a tough financial state, closing departments and firing employees, the council chairman Raimonds Dūda has spent nearly 25 thousand euros on educational missions. [..] Dūda went to Switzerland five times between September and December last year. When we started to ask elaborate questions, the council decided to step down. The council's extravagant spending [..] is the real reason why the dialogue with the ministry is at a dead end."


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