Israel's "challenges" extend even to the postal sphere. Postal agency operators throughout the country were notified last week that their contracts would not be renewed, and hundreds of thousands of people throughout the country were about to find themselves without more than the most basic postal services. At the last moment, however, the Postal Authority announced that the contracts would be renewed for one more month, pushing off the fateful decision until March 1.



Postal Authority spokesman Yitzchak Rav-Yichye told Arutz-7's Ruti Avraham that the postponement was designed to allow the Authority and the agency operators to complete their negotiations, in the hope that a mutually acceptable agreement can be found.



The Postal Authority was recently privatized, i.e., it was legislated into a government company. In the wake of this, the company drew up new contracts for the agency operators - which they refuse to sign. One of them explained to Avraham that the new contract cuts into the profits of the operators and obligates them to unacceptable working conditions. "For example," she said, "we are forbidden to hire someone to work in our place, and must remain in the building whenever the agency is open to the public. What about if we have to leave for a family celebration or other pressing matters?!"



The new contract also cuts the agencies' profits on stamp sales from 11% to 7%, and requires them to pay for all supplies - stamps, post cards, parking and phone cards, and the like - in advance. The agents may not choose the workers to be hired or fired, although they must pay their salaries, and must install in and around the building whatever security devices the authority requires.



If in fact the agencies are closed, residents of outlying areas will have their mail delivered daily, but will, for all intents and purposes, have to travel to the nearest large town for special services such as receiving and sending packages, paying bills, and the like.



Knesset Economics Committee Chairman Shalom Simchon (Labor) said that he would do his best to mediate between the sides so that an agreement can be reached.



The Postal Authority completed the year 2002 with a deficit of 150 million shekels, and in the course of 2003 decided upon a series of cost-saving measures.