PostNL takes government to court over losses on postal delivery

Photo: DutchNews.nl

PostNL has filed an urgent legal case against the Dutch state, saying it needs financial support to avoid further losses because of its legal obligation to deliver letters.

Chief executive Pim Berendsen said the company was requesting an advance payment and a swift ruling. “Given the major impact on our financial position, we are today applying for an interim injunction in which we ask for an advance and a rapid legal decision,” he said.

The move follows the government’s decision on 30 June to extend the delivery time for standard letter post from 24 to 48 hours. While PostNL has welcomed the change, it said in July the measure was not sufficient to keep the service financially viable and it may go to court.

PostNL wants €68 million in compensation to maintain deliveries this year and next. The company has long made a loss on letter deliveries but is obliged by law to continue providing the service.

“In line with European law, providers of public services are entitled to compensation if the obligation placed on them constitutes a disproportionate burden,” Berendsen said in a statement accompanying the half-year results.

The company’s losses on letter post rose to €20 million in the first half of the year, up from €6 million in the same period last year. While parcel delivery remained profitable, earnings were lower than in 2023. PostNL as a whole reported a net loss of €41 million.

Thank you for donating to DutchNews.nl.

We could not provide the Dutch News service, and keep it free of charge, without the generous support of our readers. Your donations allow us to report on issues you tell us matter, and provide you with a summary of the most important Dutch news each day.

Make a donation