Newly formed Israel Postal Company to begin operating at the end of January

A formal signing ceremony of the new Israel Postal Company was held last Wednesday night in the Jerusalem office of Finance Minister Ehud Olmert.
 
The ceremony was attended by Postal Authority chairman Ya'acov Edri, Postal Authority director-general Avi Hochman and Histadrut Trade Union head Ofer Eini.
 
In a press release the finance ministry said that the new Israel Postal Company will begin operating at the end of January and be run as a profit-making entity under the Government Companies Authority.
 
The new postal company will have greater freedom in its services it would no longer be allowed to bear deficits or have to pay royalties to the Treasury. Yet, it would continue to provide postal services to the entire population - even in outlying areas where services are less profitable or not profitable at all.
 
The ministry also noted that the Postal Company will cut its staff by 9%, ( 450 jobs), over the next three years. All employees who move to the new company will receive a one-time monetary bonus and higher salary grades.