The Ministry of Communications announced: Israel Post will be transferred to private hands

The privatization process of Israel Post continues: the Ministry of Finance and the Ministry of Communications have agreed that 100% of the company's shares will be transferred to a private investor.

By the end of next year, loss-making branches will be closed and a move will be made to carry out operations via the Internet in full - without accessing the branches.

Yinon Ben Shoshan

10/07/2022

Sunday, 10 July 2022, 13:36 Updated: 14:02

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Israel Post (Photo: Walla! Technology, Yinon Ben-Shoshan)

Minister of Communications Yoaz Handel and Minister of Finance Avigdor Lieberman decided today (Sunday) that 100% of the shares of the Israel Postal Company will be sold to a private investor - instead of 60% as originally planned.

At the request of Minister Handel to set schedules, the Companies Authority, which believes in the privatization process, undertook to meet the 16-month schedules in which the sale process will be completed (end of 2023).

Despite the transition to private hands, the company will continue to be overseen by the state.

According to the Ministry of Communications, "In light of the postal financial situation, meeting schedules, and bringing in a private investor with a business orientation, will bring the company effective management, improve postal services for the Israeli public and adapt it to the current era - and this is the best result for us."

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As mentioned, the board of directors of the postal company approved the convalescence agreement formulated by the Ministry of Finance, the Ministry of Communications and the Government Companies Authority.

Under the program, up to 2,000 employees will be laid off within three years (some will retire and some will be laid off).

In addition, the agreements include an efficiency plan and reduction of payroll expenses, accelerated transition to digital services, delivery of packages with high accessibility, dedicated service for older populations, re-retirement of postal services and promotion of competitive conditions in the postal market.

In the outline of the Ministry of Communications, by the end of next year, loss-making branches will be closed and a move will be made to carry out operations via the Internet in full - without accessing the branches.

In this way, a 'package to the house' system will be established, as part of which packages, letters and registered mail will be collected from adult homes.

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