TNT Post has called on the government not to soften employment regulations agreed when the postal market was liberalised, as requested by its competitors Sandd and DHL Global Mail.

Sandd and DHL have announced that they are to challenge the basic social requirements set down by the sector, saying it is impossible for them to ensure a minimum wage for delivery workers. Most of the market’s new players pay workers for each item they deliver and they are not covered for pensions, sick pay or social security insurance.
TNT has ‘taken note’ of Sandd and DHL’s announcement and ‘is urging’ the government not to relax the requirements agreed by all the players, the company said in a statement on Wednesday evening.
TNT said price had been the determining factor in some 60% of delivery contracts put out to tender this year. Sandd is offering rates of 12 cents per item and DHL 13 cents, winning contracts totalling some 150 million mail items from TNT Post, the former state monopoly said.
Fair conditions
‘Restrictions under competition law prevent TNT from offering rates at this level. Furthermore, TNT Post feels that such a price level is not desirable because it blocks the way to fair conditions of employment,’ the statement said.
When it was agreed to open up the market to full competition, the government, trade unions and employers agreed to phase out the piece rate payment system. By October 2012, 80% all delivery workers should earn the minimum wage – currently €1,381 a month.
TNT is currently embroiled in a pay dispute with postal unions. It wants delivery workers to accept pay cuts in return for job guarantees. Workers have rejected the call and the unions are now hoping for a 1.5% pay rise.
The company is also the sudden focus of two activist shareholders, Jana and Aimco which own over 5% of the shares and are reported to favour breaking the company up.