[January 18, 2006] CORRECTED: Japan Post unveils draft to reform 'tokutei' post offices+ Tweet (Japan Economic Newswire Via Thomson Dialog NewsEdge)TOKYO, Jan. 18_(Kyodo) _ Japan Post President Masaharu Ikuta unveiled Wednesday a set of draft measures to reform small designated ("tokutei") post offices that have often drawn criticism for their vested interests, including handing down top positions through the generations within a single family. "There is systemic fatigue," said Ikuta, emphasizing the need for reform while noting their advantage of community-based operations. The measures feature reviewing some of accepted practices, including exemption from transfers, while expanding a performance-based salary system and bringing down the retirement age of tokutei postmasters from the current 65 to 60. In addition, Japan Post included a reform plan of purchasing the rented buildings of approximately 19,000 designated post offices across the nation with some 70 billion yen. By turning them assets, the new Japan Post will be capable of expanding and managing more diversified business, including a convenience store operation. Although Japan Post plans to introduce the measures in phases after the privatization of Japan's postal services starts in October 2007, some of the measures, namely the introduction of transfers and acquisition of office buildings, will be conducted before the privatization. Japan Post plans to submit the proposals to the national association of postmasters of designated post offices for full discussion. Designated post offices in Japan dominate, acting as roughly three-quarters of the 24,000 post offices across the country. They have long served as a vote-generating machine for the ruling Liberal Democratic Party. Despite their status as public servants, the top-level workers at many tokutei post offices have gotten their jobs as they were passed down within families, and little had been made public about recruitment exams, including when they are held and in what manner. The employee retirement age of 65, which is higher than that of other public servants, has often drawn criticism as well. Currently, about 80 percent of the designated post offices are not engaged in mail delivery, leaving most of that task to about 1,300 large conventional post offices located in more populated areas. Japan Post has proposed to purchase, in principle, the designated post offices that are engaged in mail delivery and are extensively indebted to the family members of postmasters. Japan Post plans to implement the reforms gradually while taking measures to ease the transition. The designated post offices date back to 1871, when the Meiji government started building a postal network across the country. [ Back To TMCnet.com's Homepage ]