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End of Remote Work at Post Office: After a Billion-Dollar Loss Last Year, Delayed Vacations and Salary Cuts at the Post Office. Know the Main Reason Behind the Deficit
Facing one of the worst financial crises in its recent history, the Post Office announced on May 14 a broad cost containment plan, aiming to save up to R$ 1.5 billion by 2025. Among the main measures proposed are the end of remote work, salary cuts, and the temporary suspension of benefits and vacations for some employees. The decision raises an alarm about the real situation of the state-owned company and the direct impacts on workers and services provided to the population.
Today we will understand how the end of remote work and salary cuts at the Post Office come about, as well as detail the other actions announced to curb the crisis and restructure the company.
Post Office Reports Net Loss of R$ 2.6 Billion in 2024
The package of measures includes a voluntary dismissal plan, end of remote work, reduction of work hours, and administrative reorganization of the state-owned company, which recorded a net loss of R$ 2.6 billion in the last year alone. Thus, the state-owned company made it to the list of the 10 public companies with the highest losses in the current government.
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The deficit is largely attributed to the drop in revenue from international parcels, a market significantly affected by the new taxation on purchases from abroad, the “blusinhas tax,” and by increasing competition from private companies, especially in the segment of goods coming from China, which was previously dominated by the Post Office.
To try to reduce the loss, the state-owned company decided to tighten its belts on several fronts. The Voluntary Dismissal Plan (VDP), which was already in progress, had its application window expanded until May this year, an attempt to encourage negotiated exits and ease the payroll.
Within the company, the working hours in the administrative units will be reduced to 6 hours a day, with salary cuts at the Post Office. There are also internal movements, where postal workers and attendants will be invited to work in the treatment centers temporarily, with the promise of a more advantageous bonus.
For now, vacations are postponed, and those who were entitled to them this year will only be able to take them starting in January of next year. The headquarters of the state-owned company has also not been spared from cuts, as budgets allocated for positions and functions will be reduced by at least 20%.
Post Office Also Brings End of Remote Work for Employees
In addition to salary cuts at the Post Office, another measure taken was the change in routine and the end of remote work, with everyone expected to return to in-person work starting June 23, 2025, except for those with a court decision allowing otherwise. Health plans are also under consideration in the restructuring. A new proposal, still under negotiation with unions, aims to redefine the benefit and cut 30% of the costs.
Management states that the measures are essential to ensuring the continuity of services and the sustainability of the state-owned company. In an internal note, the Post Office stated that it has the opportunity to once again prove the strength and resilience of its organization.
Still in the statement, the company informed that although 85% of the units are considered deficit, the Post Office ensures universal access to postal services, with fair rates, in each of the 5,567 municipalities served.
The plan also foresees the sharing of operational units, review of contracts, sale of idle properties, restructuring of the treatment and service network, launching an e-commerce platform, optimization of operational and logistical networks, and raising R$ 3.8 billion with the New Development Bank (NDB), the BRICS bank.
Fentect Will Launch a Committee in Defense of the Post Office
With the announcement of salary cuts at the Post Office, the Interstate Federation of Unions of Workers at the Brazilian Post and Telegraph Company (Findect), one of the representative entities of the state-owned workers, stated that it has become essential to open a channel for permanent dialogue between workers and the management of the Post and Telegraph Company (ECT).
According to Fentect, in a document sent on the 14th to President Luiz Inácio Lula da Silva, structural changes will only be effective when discussed with those who operate the company daily. Transparency in economic, actuarial, and operational data, shared beforehand with employee representatives, avoids setbacks and enables the construction of solutions aligned with the reality of the workforce.
The National Federation of Workers in Postal, Telegraph and Similar Companies (Fentect), another representative entity of the company’s workers, announced that it will launch a committee in defense of the Post Office next Wednesday (21) at the Chamber of Deputies. According to the entity, this initiative has the support of the Parliamentary Front in Defense of the Post Office.
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