Tuesday, November 20, 2007

Review of the Franchising Scheme

A meeting to review of the Franchising Scheme was held with the Dept. of Posts on 19.11.2007 at Dak Bhawan. Sri. D.Theagarajan, Secretary General and Sri. Bhagawan, Financial Secretary, NUPE-C represented FNPO in the meeting along with leaders from NFPE side. The meeting was presided by the DDG Planning. Both the Federations opposed the franchising scheme. The FNPO opposed the scheme on the following grounds.
(a) During the discussion in the last meeting held on 3.11.2006, it was informed that these Franchising Post Offices would be provided in the extension areas of the city/town where the Post Offices are not available. But the promise of the Department was not kept up.
(b) According to information available, franchising did not bring any traffic to the Department as on date. The Secretary General furnished the information collected by him from the 10 franchisee outlets from Tamilnadu in support of his claim. The FNPO expressed the following apprehensions:
1. There is a possibility of mingling fake stamps into original stamps, as there is no cross check to see whether correspondingly functions done by franchisees, for example sale of postal statoneries (Stamps, inland letters, cover etc.,)decrease/increase in the post office concerned.
2. MO Commission is given as Rs. 3.50 per MO booked which will lead to unnecessary splits causing loss of commission earned by the Departrment. For example if Rs. 500 is sent as MO, normal commission is Rs. 25 (5 x 5). If the same amount is sent in 10 MOs of Rs.50/- each, commission to be given to franchise Rs. 3.50 x 10 = Rs. 35/- earning Rs. 25/- and paying Rs. 35 as commission.
3. If the franchise after collection of huge money from the public, absconded, then the Department will loose not only money but also the very image of the Department will go, causing damage to the Goodwill so far earned.
4. The most important point is that franchisees definitely will try to convert our customers into their customers by way of collection lf letters at their premises etc. This will lead to unnecessary payment of commission to the franchises.
5. As on date public is approaching post office only to send II class articles and parcels and Business Mails. Other personal communications are made only through electronic media such as cell phone, e-mail etc. The post is the last resort of personal communication. Therefore, franchising of Post Offices is not an alternative to bring the courier mails to the Department. Instead we can utilize our infrastructure properly. As on date we have 1,55,000 post offices unlike any other organization in the world. We can relocate the post offices wherever necessary.
6. Above all, the details of income which come from franchising outlets is very meager, a franchisee, paying Rs. 10,000/- as deposit getting commission of maximum Rs.2000/- per month, after employing a person in the shop. Therefore, this franchise willnot continue our job sincerely in due course. The scheme will become like 'PSSK', 'LSV' 'LPA' in near future. The scheme will not anyway to improve our business as well as the need of public. Hence, my Federation totally oppose the franchising of postal outlets.
{N.B: The abov note was given to the department by the FNPO on 19.11.07}
The department furnished the details of business transacted by the Franchisees in respect of sale of stamps/stgationery, No. of RLs booked, No of Speed Post articles booked, No. of Mos booked and retail services in Rupees.

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