Japan Post group to restructure operations
02 Jan 2010
In a move seen as a big step backwards for privatisation of postal services in Japan, the government is planning to reorganise the Japan Post group through a merger between group companies in which the government will possess "over one-third or even over half" of the shares, Kyodo News Agency reported yesterday.
Streamlining of the group structure would be centered on a merger between state-owned Japan Post Holdings Co, struggling mail and parcel delivery unit Japan Post Service Co and post office operator Japan Post Network Co, trimming the number of group firms to three from five, internal affairs and communications minister Kazuhiro Haraguchi said.
The new company will hold more than one-third of the shares in the group's profit-making banking and insurance units, Japan Post Bank Co and Japan Post Insurance Co, giving it the right of veto on important issues at shareholders meetings.
"Combining Japan Post Holdings, post office operations and mail delivery services will enable the group to provide varied services as one unit, along with two financial services companies under its umbrella," Haraguchi said.
By realigning the postal system into three companies and with the two financial companies forming consignment contracts with the parent company, postal delivery workers and post office employees from the parent company will become able to handle savings and insurance, Mainichi Japan reported yesterday.
As a result, postal delivery workers will be able to withdraw pension benefits from the savings accounts of elderly people in depopulated areas at their request and deliver the money to them, and nationwide service that had been restricted to postal delivery will extend to cover savings and insurance.
