An abrupt announcement by Hellenic Post (EL.TA), Greece’s state-run postal service, that it will close no less than 204 branches around the country generated a firestorm of reaction on Friday, with the matter now set for debate in Parliament at the committee level.
EL.TA’s management had long hinted at another round of branch closures as part of cost-cutting measures to reduce tens of millions in annual losses incurred by the postal service. Nevertheless, the abruptness of the announcement – with the branches’ last day being Friday – and the sheer number involved took public opinion and employees by surprise, while generating the more-or-less expected political backlash.
Forty of the branches are in the greater Athens-Piraeus agglomeration.
The trend to curtail or even discontinue postal services has accelerated over past years amid increasingly digital-dominated transactions and correspondence.
In the afternoon, Economy and Finance Minister Kyriakos Pierrakakis acquiesced to a request by opposition parties in Parliament to convene at least two relevant Parliament committees to discuss the issue, with deputies of the ruling party also favoring the review.
Pierrakakis said EL.TA’s top executives will be present to answer deputies’ questions, while at the same time warning that “…Difficult decisions much be taken. EL.TA has problems, there are many issues in its restructuring (program) that must be resolved.”
The extraordinary committee session will convene on Tuesday, with both the political leadership of the finance and digital governance ministries set to attend, along with the leadership of the Growthfund, the National Fund of Greece, which holds EL.TA in its portfolio.
Reactions by ND deputies
In addition to the opposition, several ruling ND MPs also expressed their opposition to the branch closure, with former minister Stelios Petsas pointing out that this isn’t only a technical issue, but also a matter of serving the public.
“There are issues with the elderly, with border regions, but also with large areas. In my district, a branch that serves so many people is closing. I hope this issue is not related to overall postal service,” he said.
EL.TA’s reply
In a statement, EL.TA’s underlined that in regions where there will be no physical location, services will continue to be provided through the distribution network, mobile units and partner locations.
According to the state company, the 204 branches that are closing had “minimal commercial activity” and, in fact, “several of them were operating at a loss of more than 150,000 euros per year.”
“…our postal carriers and partners will cover every region, ensuring that no community is left without access to basic postal services…”
In terms of senior citizens and residents of remote areas, the post office said: “Citizens will continue to be served by a postal carrier. EL.TA distributors now have modern equipment, such as POS and portable PDA devices, which allow them to carry out transactions and provide services door-to-door.”
