NZ Post profit shows no urgent need to slash services - union

Photo / NZME.

The postal industry union say half-year profits show there is no urgent need for New Zealand Post to slash services.

NZ Post delivered a $100 million half-year profit and EPMU organiser Joe Gallagher said there shouldn't be pressure to deliver bigger dividends.

"New Zealand Post provides a core public service which deserves to be supported, and it's doing okay," Mr Gallagher said.

"There's no need to panic.

"The postal industry is changing and we have to adapt to that, but this result shows there's time to take a considered approach instead of cutting back services and jobs."

NZ Post announced last week is was looking to pare back its traditional letter-delivery service, with plans to move to alternate day delivery for standard letters in urban areas from July and shutter stores in favour of agency and kiosk services.

The changes to delivery days are expected to cost 400 posties their jobs.

The company is two years into a five-year transformation plan.

It announced that it would be trialling the use of new vehicles, as well as a dependent contractor model which EPMU says threatens workers' wages and conditions.

It is also planning to move its financial services team to the Philippines.

Mr Gallagher said the Government should be investing more in NZ Post and Kiwibank, which accounts for the bulk of earnings.

"The returns for our country - both financially and in terms of creating skilled, secure Kiwi jobs - are well worth it," he said.

A New Zealand Post spokesman said it already had contractors working as posties and there was no preconceived view about what employee model will be used in the future.

He said the organisation was not planning to move its financial services team to the Philippines.

"Some transactional roles are being moved but the vast majority of the function will remain here."