KUALA LUMPUR: Pos Malaysia Bhd will terminate the outsourced Pos Riders agents contract, affecting 262 agents, in the Klang Valley with effect on Sept 1 as volumes have continued to fall significantly.
In a statement on Thursday, this was under phase two of the rationalisation of the Pos Rider outsourced programme which was created in 2019.
It said since the programmed was started, it helped Pos Malaysia deliver more parcels across Malaysia.
Still, given the evolution of the domestic postal and courier market, snail mail volumes have continued to significantly fall, while more e-Commerce players now offer in-house delivery services.
The subsequent review of its operations led to the decision to discontinue the Pos Rider scheme in stages, it said.
However, in recognising the services of the former Pos Rider workers, it will prioritise these agents to serve on a part-time basis if there is a spike for parcel delivery.
It said this would benefit both parties as the former Pos Rider agents can earn extra income while Pos Malaysia is able to maintain cost efficiency.
Demand spikes over a calendar year typically occurs during festive sales and special date sales organised by the various retailers, it said.
Pos Malaysia said to ensure business viability and its sustainability, it will continue to review its business strategies, costs and resources as and when necessary.
It added this has become especially important during the pandemic, with all business segments feeling the impact of restricted movements and curtailed operations.