NT wins unions agreement whilst DP loses court case

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TNT Group has finally agreed a deal with the Netherlands postal unions. The agreement, which was announced late on Friday, states that TNT Post's workforce will receive a 0.7% pay increase in return for an agreed approach towards a voluntary redundancy programme. TNT Post has declining volumes and the company has been keen to reduce employment levels. This agreement, known as the 'Collective Labour Agreement', is seen as a way of achieving this. The company aims to use this structure to drive through annual savings of €395m from 2015 onwards, something which TNT Group says is vital for the continued viability of its TNT Post business.

In contrast Deutsche Post has indicated that it will pressure the Federal Government in Berlin to re-impose a minimum wage in the German postal sector after German courts ruled that the existing agreement was illegal. The judges criticised the failure to consult companies other than Deutsche Post, when the government imposed the restrictions in 2008. This is seen as a victory for TNT Group in its attempts to enter the German market through its joint venture with the PIN Group. However, over the weekend, Frank Appel CEO of Deutsche Post-DHL, made comments to journalists that indicated he would push for new legislation imposing a minimum wage in the sector. He is quoted by the Financial Times as asking "Is it right, in a declining market, just to compete on salary costs?"

The minimum wage in Germany is seen as a major barrier to entry by TNT which is looking to run a lower cost network to rival that of Deutsche Post.
These developments coincide with senior management changes at Britain's Royal Mail, as its former chief executive, Adam Crozier, left in order to run a television company. It is unclear who will succeed him.