The Department of Posts has engaged MCKinsey, the multinational Consultancy for recommending the structural reorganization of the Dept of Posts and the McKinsey is issuing dictums to the Circle heads who themselves say helpless and many unwarranted changes are taking place in the post offices, RMS offices. The creation of speed post hub and the proposal for delivery hub for first class mails are the glaring examples of unsuitability of the consultants for our India Post which had its own adverse effect in the department. Let us know short about this concern so that one can understand why we are protesting and launching struggles to save postal department as Government service.
Mckinsey & co was founded in Chicago in 1926 by James O. Mckinsey. No doubt it is one of the leading Management consultancy which suits the countries adopting capitalism, globalization policies. It advocates the method of Privatization, Public Private Partnership, Globalization polices etc. There are many big concerns collapsed after they were engaging it as their consultants. 'Enron' was one of the biggest firms collapsed after they engaged Mckinsey as consultants. The CEO, Enron Sri. Jeff Skilling was sentenced to 24 years in federal prison. 'Swiss air' was another which entered bankruptcy after the Mckinsey recommended the 'The Hunter strategy'. 'Railtrack', the British railway company also collapsed after following Mckinsey's advice to reduce spending on infrastructure and return cash to share holders instead, after which there was a number of fatal accidents. There are cellular phone companies worst hit due its Mckinsey Reforms.
Mckinsey is a named defendant in Hurricane Katrina litigation for the advice to insurance companies to stop premium leakage by undervaluing claims using the tactics of 'deny, delay and defend."
Several civil suits have been filed against home insurance and vehicle insurance companies after the insurers were advised by Mckinsey and allegedly paid the insurance parties significantly less than the actual value of the damage, Mckinsey was cited in a February 2007 CNN article with developing controversial car insurance practices used by State Farm and All state in the mid 1990s to avoid paying claims involving Soft tissue injury. The List will become tail like General Electronic CO, Minnaepolis Public Schools etc. There are many books and articles written by various eminent economist and others about the series of blunders and disasters alleged to have been Mckinsey's consultant's fault.
Mckinsey & Postal
If you go through industry insight of Mckinsey, you can find the following which will alone exhibits its recommendations to be made for India Posts on privatization and dismantle the existing Government Service.
"Postal, Express, and Parcel Services"
"In addition to new technologies and systems, globalizations, deregulation, and privatization have been the key drivers of change in the post and express world over the past two decades.
Numerous postal companies have successfully navigated the path of privatization from state monopolies to become listed companies. Others are poised to being this journey. The challenges are huge.
A clear strategy, supported by strong management, detailed planning, and transparent processes, is vital to a corporate transformation. We help our clients identify and pursue growth opportunities in all relevant market segments, both domestically and abroad. We support them as they position themselves to meet regulatory requirements and accompany them on the road to successful privatization. We support them in developing strategies to optimize value-add operations and processes and in implementing performance-management and staff-development systems."
No Exaggeration. The above were only the experts from the web site of Mckinsey
Mckinsey & U. S. Postal Service
The Mckinsey who was the consulting agency for U. S. Postal Service, has suggested to change a law requiring changes in delivery six days a week to three days and closure of post offices. It suggested trimming 6 day delivery by one day, to five days a week which was resisted by law makers in March 2010.
Originally, it proposed that 'the U. S. Postal Service, facing $ 238 billion budget deficit by 2020, should consider cutting delivery to as few as three days a week. It said that in Jan 2010, it reviewed 162 Post offices, stations and branches for possible closing in current year.
Both the Unions in U. S. Postal Service objected strongly about the elimination of Saturday delivery. William Burns, the President of American Postal workers union referring to the erosion of customer confidence has commented that "it will be the beginning of the demise of the Postal Service. They have already made a lot of cost savings, a lot on the backs of my union, which we understand. But what's the next step? Do you go to four days a week, three days? Once you establish the financial problems, it is never ending."
The following is the extracts from one of the Journal 'Postal Trend watch' about the recommendations of consultancy agency on US Postal Service.
"The report also proposed reducing postal wages and benefits as a means of cutting costs. Although the Postal Service is required to maintain compensation comparable to the private sector, decades of economic research suggest that unionized Postal Workers are paid about third more than analogous private sector workers. With benefits, the compensation premium for Postal workers can exceed 40 percent."
From the above, we can very well understand the policies of such consultant companies.
About India Post
"Studies by Kckinsey and others have pointed out that, in the future, India Post will be great vehicle for public-private partnerships. Following models of liberalization undertaken in other countries, some planes look to debundling the owner, operator, and regulator functions of India Post.
India Post's huge distribution network – the largest in the world – may be its most significant asset in any future partnership with either private-sector concerns or with other government agencies.
The national Postal Policy statement on India Post's Web site explains that "The new economy and modern markets require [the postal service] to become more financially autonomous and commercially flexible in order to deliver its core functions and other services." To that end, India Post has continued to look for new revenue-producing projects and the volume of traditional letter and parcel mail shrinks."
The Mckinsey & Co recommended expanded partnership with Private industry, like retail location and kiosks, Mckinsey commented about the required law changes that "actions in any one area will not be enough to close the gap." Among other recommendations in the report would be ending doorstep delivery of mail and a shift to clustered mail boxes in residential areas, creating new products and services to increase revenue, and developing hybrid mail products that integrate electronic mail with Postal service Products and services.
From the above, one can very well understand the consultancy service to whom our India Post engaged. The continuous struggles of AP circles and the recent three days strike in Chennai GPO and the chaos conditions proposed in Bangalore GPO are sufficient to know about the consultancy.
Are we going to remain silent and allow things as mute spectator? Or resist the move with our unity and save the Postal Service as Govt. service. This is the million dollar question before us.
Okay comrades. Be donning the battle dress. Keep our gun powder dry to meet the eventualities.