TNT:Employees to pay pension contributions for the 1st time

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NETHERLANDS – Listed postal company TNT Post plans to ask staff to pay pension contributions for the first time as part of a cost cutting measure meant to avoid significant layoffs.
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Spokesperson Ernst Moeksis told GP the proposal would see employees start to pay a pension premium of 2% from the beginning of 2010. This would be increased to 4% in 2011, and up to 6% in 2012.

He added the negotiations with the unions are planned to start on November 26 and TNT and aims to complete talks by year-end.

The company's proposals also include a net pay cut of between 2% and 3.5%. In addition, employees are asked to have their Saturday work bonus cut from 40% to 20%.

Moeksis said TNT calculates that of all members of staff agree to a 3.5% pay cut, the number of compulsory redundancies could be reduced by fewer than 1,000.

However, he declined to comment on the overall effect of all the cost cutting measures and on the total number of redundancies currently planned.

In its results for the third quarter published last week, TNT posted an operational profit of €102m (US$153m), 10% below the 2008 third quarter figure.

It also reported €128m cost saving in the last quarter of this year and €368m year to date.