Post firms win pay case against state

Budget postal delivery firms Sandd and Selekt Mail (DHL) have won their lawsuit against the state about employing permanent staff, news agency ANP reports.


Judges in the Hague ruled on Thursday the economic affairs ministry cannot force them to employ delivery workers instead of paying them for every item of post they deliver.
The deal to make Sandd and Selekt compete on more equal terms with former state monopoly TNT was one of the main conditions the government attached to the complete liberalisation of the postal market.
Under the deal, Sandd and Selekt are supposed to employ at least 10% of their delivery workers by April 2010 and 80% by 2012. TNT argues that by paying workers piece rates, and not paying pensions, sick pay or holiday pay, its competitors are able to under cut charges.
In a reaction to the court decision, a ministry spokesman said the ruling is being studied carefully. ‘Paramount is that a ‘race to the bottom’ in terms of pay and conditions for postal delivery workers must be avoided,’ junior economic affairs minister Frank Heemskerk.

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