Pos Malaysia - Our Postmen's Long Overdue Pay Hike

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By Sakina Mohamed

KUALA LUMPUR, May 4 (Bernama) -- Do you know that your friendly neighbourhood postman is subsisting on a starting salary of RM610, well below the poverty line?

This means they belong among the poor with income below RM700 per month.

While many have been quick to complain about the poor level of postal delivery service, they are unaware that these postal workers' salary is even lower than a civil servant of a similar rank - by 19 per cent. This can no doubt contribute to low morale among the postal workers.

Meanwhile, those working at the Pos Malaysia counters are earning 25 per cent less than their counterparts in the government sector. This shocking piece of news came to light recently alongside that of Pos Malaysia's impending tariff increase in July.

While there are those who bemoan the tariff hike, one needs to understand that an increase in tariff will give these postal workers a long overdue salary adjustment.

WHY NOT SOONER?

Pos Malaysia Chief Executive Officer Datuk Syed Faisal Albar said many people have asked why the salary adjustments did not come sooner.

"The truth is, if we did just that, we would have incurred huge losses," he said.

As the postal business is labour-intensive, staff costs accounts for about 61 per cent of total operating expenditure.

"Although we understand that this is no longer an economic issue but a moral one, a public listed company as ours have a responsibility to our shareholders to register profit and pay dividends," he said.

However, Syed Faisal who took over as CEO just 16 months ago understands that salary is closely linked to the quality of service.

"A new postman coming in to work with us tend to last two or three months before realising that it's hard work for a low salary, despite working for a private entity.

"Subsequently, they will leave for a job in the government sector where they may become a driver or clerk with higher pay."

Besides that, many of their postal workers were also doing part-time jobs to supplement their income, which could affect their quality of work and commitment to Pos Malaysia.

"We also have problems in getting employee motivation up because their salary is so low," he said.

In the Klang Valley alone, the staff turnover rate for postmen is about 20 per cent. And the problem with newer postmen is that some of them may tend to missort,Syed Faisal said.

"That's how you end up getting your neighbour's letters. In the bigger scheme of things, a low salary or tariff can impact even a simple level of service."

He assured that missorting only happened occasionally, "but there is certainly room for improvement".

Syed Faisal believes that a hike in the country's postal charges would definitely help in boosting these postal workers' salary to at least match their counterparts in the government sector.

"I'm thankful that the government has approved the tariff increase as it translates into higher salary for Pos Malaysia staff, and is also in line with the government's call to migrate towards becoming a high-wage society under the New Economic Model," he said.

TARIFF UP, SALARY UP

There are 15,780 Pos Malaysia workers as of 2009, of which 97 per cent of them (15,280) are postmen and postal clerks.

A salary restructuring for their workers will bear an operations cost of RM66 million a year. Without increase in domestic postal stamp prices, Pos Malaysia will suffer losses of RM20 million annually starting from this year.

Pos Malaysia has yet to revise postal rates since 1992, despite going into the private sector some 18 years ago.

"This makes Malaysia's postage charges among the lowest in Asean, second only to Thailand," said Syed Faisal.

The decline in mail volume and a marked increase in operating costs due to higher fuel prices have also made the situation dire.

"We have found that successful postal companies in the world adjust their tariff periodically to meet the rising cost of doing business as well as to pay their staff accordingly," he said.

When asked if a mere 10 sen increase in tariff can cover a salary increase of between 19 to 15 per cent for over 15,000 staff, Syed Faisal said it can.

This makes sense as about 65 per cent of Pos Malaysia's revenue comes from mail services, so even a small hike in postal charges can impact its income significantly.

HIKE IN TARIFF

The hike in tariff will affect domestic stamp prices in the following group: -

Standard letter under 50g -

Non-Standard letter under 100g -

Periodicals -

Postal documents -

Registered mail -

Parcels under 2kg

It will not affect:

- Non-standard letters more than 100g to 2kg

- Private mailboxes

- Locked bags

- Over-the-counter delivery

-- BERNAMA

[TrueBlueTerrier]

Syed Faisal who took over as CEO just 16 months ago understands that salary is closely linked to the quality of service :cfo

"We also have problems in getting employee motivation up because their salary is so low," he said. :lfo

"A new postman coming in to work with us tend to last two or three months before realising that it's hard work for a low salary, despite working for a private entity. :mfo