Explaining the planned reorganization of post offices, Krauze-Čebotare noted that “Latvijas Pasts” is not a public institution, but a state-owned joint stock company, which has to work with profit or without loss and has no social functions.
She told LR that every year there was a drop in the volume of letters and subscribed press. As a result, the company's revenue also shrinks.
"As one of the largest employers in Latvia, it is impossible for us to adapt this decline to the reduction of employees or costs. Pressure on wages is also still growing and we regularly review wages. It is also impossible to reduce the number of fixed assets or employees in proportion to how the subscribed press and the number of letters fall, ” said the company's manager.
As a result, “Latvijas Pasts” is currently in a financially difficult situation. If it were to retain existing networks and offices, the company would have to operate with losses, which would require additional funding from the state.
Asked about the company's potential insolvency, Krauze-Čebotare denied it, adding: “If we don't act responsibly, it's a two, three-year question of that happening.”
She said the problems began years ago. At the time, there were also talks between the Estonian, Latvian and Lithuanian Post regarding the formation of a joint venture, which was not decided upon.
Conversely, negotiations with the Ministry of Transport are currently taking place regarding the reorganization of post offices, assessing the optimal model, and evaluating possible additional funding for the preservation of offices.
As reported earlier, the Latvian Post has decided to close or reorganize 105 of the 176 post offices across the country. It has caused outrage in the public space.
