TNT job cuts necessary, says advice group

The planned reorganisation and job cutting at post company TNT is necessary, and extra steps may be needed in future if costs continue to rise, according to an independent report by the Boston Consulting Group.

Postal workers unions asked Boston Consulting to examine whether serious job cuts announced by the company earlier this year were unavoidable.
TNT plans to cut its workforce by 7,000 by 2010, but has said that figure could rise to 11,000 if the unions won’t agree to a pay freeze and cuts in secondary benefits.
The company is facing increasing competition from firms that pay workers for each item they deliver, rather than a traditional salary with pension rights.

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