Australia Post has scrapped bonus payments for its executive team after facing pressure for asking workers to volunteer.
"Today the Australia Post board determined that no short-term incentive payment would be made to the executive team for financial year 2020," chairman Lucio Di Bartolomeo said in a statement on Wednesday.
"I have every confidence in the executive team and their commitment to excellent performance in the year ahead."
Executives were in line for about $7 million in bonuses, at the same time workers were being asked to volunteer to help clear a backlog of parcel deliveries.
Labor's communications spokeswoman Michelle Rowland has welcomed the move but says issues with Australia Post are far from over.
"Scott Morrison should follow suit and dump his plan to cut the frequency of mail delivery, whether it is in our cities or our regions," she said.
Employees in Victoria were sent an email asking if those with a driver's licence and car were free to pick up parcels and deliver them to customers.
"Australia Post executives are considering paying themselves millions in bonuses, while simultaneously calling for volunteer delivery drivers," Ms Rowland said.
"Are you kidding me?"
Australia Post is managing record parcel volumes - up 186 per cent in Victoria in the third week of August - at the same time as its workforce capacity is reduced due to stage four restrictions in Melbourne.
"That's why - like we do in the lead up to Christmas each year - we have put the call out to our Melbourne office team members to help us with our record volumes if they can," a spokesman said.
"Our people who help out on the weekend will receive time in lieu. We will also reimburse our people for the use of their cars as per our usual mileage and expenses claim process."
Australia Post says 200 workers from Melbourne have already put their hand up.
Regulatory changes at Australia Post will continue despite Labor trying to overturn them.
The opposition fears the changes will lead to one-in-four postal workers losing their jobs.
Under the changes, priority letters have been suspended, deliveries moved to every second day in metropolitan areas, and five days is allowed for intrastate posting.
Thousands of motorbike posties are being redeployed into delivery vans or warehouses.
Communications Minister Paul Fletcher dismissed Labor's concerns, saying the temporary changes would help the postal service better respond to the coronavirus pandemic.
Australian Associated Press
