German Deutsche Post to merge three subsidiaries
Deutsche Post, the German postal service, is planning to merge three of its subsidiaries, Euro Express, Danzas and DHL. The integration of these subsidiaries forms part of the company’s Star programme, with which the company is aiming to increase its profit to 3.6bn euros by 2005. This corresponds to a rise of 1.4bn euros over a period of three years. The subsidiaries are to be merged to form a new company called Deutsche Post Euro Express Verwaltungs GmbH.
According to trade unions, 4,350 of the staff of these three subsidiaries, which currently employ around 10,000 staff in total, will not have a job with the new company. Although the pre-contract that has been drawn up between Deutsche Post and trade union Ver.di states that Deutsche Post will attempt to find further employment within the group for as many staff as possible, it is thought that there may be some redundancies. This would be the first time for over 10 years that Deutsche Post has had to resort to redundancies.
