An Post was accused yesterday of imposing "massive" costs on small businesses by deciding to withdraw SDS parcel and courier services from them from next month, writes Chris Dooley, Industry and Employment Correspondent.

The development sparked a new row between the company and the Communications Workers' Union (CWU) over the plan to close the SDS service early next year.

More than 3,000 SDS customers were advised recently that their account facilities would be withdrawn from December 1st.

In a letter to SDS customers last Friday, the general secretary of the CWU, Mr Steve Fitzpatrick, said small and medium-sized enterprises had been "targeted" in the company's decision.

Closing the accounts would force companies to use over-the-counter facilities at post offices at treble the existing cost, he said.

"This is because items processed for SDS through the post office facility are priced individually and the pre-existing bulk discount is being withdrawn."

The letter seeks the support of small businesses for the CWU's campaign to force An Post to reverse its decision to close SDS with the loss of 270 jobs.

The union is to hold a press conference today to outline details of an "independent financial review" of the decision to close the division and reintegrate its services into the main An Post group.

A spokesman for An Post yesterday reiterated that the decision was taken after a "thorough and detailed review" of the SDS business. "All options were examined including sale, joint venture, continuation of a 2003 recovery plan and operation as a stand-alone business. None but reintegration were found to be viable."

Mr Fitzpatrick's letter to SDS customers, he said, was a calculated attempt to undermine the authority of the An Post board.

An Post also claimed that, by writing to customers in such terms, the union had removed itself from a process set up by the National Implementation Body following the announcement of the planned SDS closure last July.

Under that process, which is chaired by Mr Peter Cassells, the parties committed themselves to "meaningful consultation and information sharing".

Mr Seán McDonagh of the CWU said it was An Post that had put itself outside the process through its decision to withdraw SDS services from next month.

Asked how members were likely to respond to the CWU's approach, Mr Pat Delaney of the Small Firms Association said the closure of SDS would undoubtedly increase costs for some enterprises.

However, the decision would be accepted as long as it was taken for sound business reasons and was part of a comprehensive plan to restore a viable, efficient and economic postal service.