The Dutch Cabinet’s decision to liberalise the Dutch postal market on 1 April 2009 has made wage cost reduction even more essential. The market is being opened up in tough economic times in which mail volumes are declining more rapidly than ever before (5 - 6% expected in 2009), partly due to growing substitution by digital alternatives. The CLAs covered by today’s in-principle agreement call on cooperation from employees to help protect as many jobs as possible at TNT Post.
Alongside the new CLAs at TNT Post, the Dutch Cabinet must ensure that fair employment conditions among Dutch postal market competitors is met. There is insufficient certainty on this matter at present. The sector CLA has yet to be finalised by the unions and postal operators, as has the Administrative Decree under which the government can demand parties to pay at a minimum wage.
The new CLAs, which will save EUR 125 million a year, form an important part of the previously announced Master plan targeting annual TNT Post savings of EUR 395 million until the end of 2015. In addition to the existing Master plan mobility provisions, TNT expects to make a provision for compensatory costs of around EUR 275 million for the employment conditions package, including the transitional arrangements and mobility budgets. Besides reduced employment conditions, the unions and TNT have agreed a job guarantee under which no compulsory redundancies will be made during reorganisations for the first three years. During the three subsequent years this will depend on a number of developments in the market.
The new collective labour agreements at TNT Post
The new collective labour agreements comprise a separate Operations CLA for new and existing operations staff at TNT Post, a new CLA for mail deliverers, and a new CLA for Saturday delivery staff, each with a term of three years (1 April 2009 to 1 April 2012). Arrangements still need to be made for a one-year CLA for employees at TNT's other Dutch business units.
The Operations CLA will mean reduced income for staff. A well-balanced package of transitional arrangements has been agreed for existing employees. Staff covered by this CLA will see their gross income fall by around 15%. TNT will offset this loss of income by paying up to 95% of the current income of all those involved during a period determined by age and number of years of service. For example employees aged 50 and over will receive up to 95% compensation until the first possible date on which they can leave the company. A structural wage increase of 1% has been agreed from 1 April 2010 and 1 April 2011. TNT Post is encouraging operations employees to look for work outside the company by offering part-time and full-time staff a mobility budget for the next five years.
Employees joining the company from 1 April 2009 will fall under an Operations CLA at a substantially lower level.
New CLAs with limited income growth have been agreed for mail deliverers and Saturday delivery staff, running from 1 April 2009 to 1 April 2012. It has been agreed that significant savings will also be achieved with the TNT CLA for employees in scales 1 to 13 (other employees not covered by the Operations CLA). New discussions will follow on this particular collective labour agreement.
In the event of any conflict or discrepancy between this press release and the original Dutch version of this press release, the Dutch version prevails
TNT provides businesses and consumers worldwide with an extensive range of services for their mail and express delivery needs. Headquartered in the Netherlands, TNT offers efficient network infrastructures in Europe and Asia and continues to optimise the performance of its networks. TNT serves more than 200 countries and employs some 160,000 people. Over 2009, TNT reported €10.4 billion in revenues and an operating income of €648 million. TNT is publicly listed on the stock exchange of Amsterdam. TNT recognizes its social responsibility, and has formed partnerships with the United Nations World Food Programme and the United Nations Environment Programme to fight hunger and pollution in the world. Our efforts are being recognised: in 2010, TNT was again designated the “Supersector Leader” for “Industrial Goods and Services” (including the “Industrial Transportation” sector) in the Dow Jones Sustainability Index (DJSI), More information about TNT can be found on its website http://group.tnt.com.
PostNL is the inventive partner in the world of sending and receiving. We have been so for 200 years already. We are primarily active in the fields of mail, parcels and e-commerce, but we also offer services in the areas of data and document management, direct marketing and fulfilment. Outside the Netherlands, we are active in Germany, the United Kingdom, Italy, Belgium and Luxemburg. PostNL employs a total of more than 59,000 people. In 2013 our revenues reached € 4.3 billion.
We like to stay ahead of things. We are the most modern postal company in the world. We are proud of that. As the first listed postal company, we are an example to the rest of the world in automatic letter sorting. And our innovative parcels network is completely adapted to the wishes of web retailers.