State wins pay and conditions dispute with budget post firms
The state has won its appeal against budget postal delivery firms Sandd and Selekt Mail (DHL) about employing permanent staff, news agency ANP reports.
Last December, judges in the Hague ruled 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.
Agreement
Last month it emerged just 0.5% of delivery workers at budget postal firms have formal contracts.
The economic affairs ministry said Tuesday’s decision means the state has a legal weapon at its disposal to make sure new postal firms develop ‘decent working conditions’ for their delivery workers.
The Financieele Dagblad says today’s ruling is a heavy blow for the budget delivery firms who will now be confronted with sharply higher costs.
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