French La Poste unions agree to modernisation
Trades unions at La Poste yesterday ended 18 months of negotiations with the French post office by agreeing to the state-owned group’s planned Euros 3.4bn (Dollars 4.3bn) modernisation of struggling mail operations.
The agreement, signed by three unions representing 59.5 per cent of staff, is a big step in La Poste’s drive to cut costs and improve the quality of its service ahead of the liberalisation of Europe’s mail market in 2009. A fourth union is expected to sign today.
“This shows the strong engagement of La Poste’s management to show that postal workers are an integral part of the modernisation process being undertaken by the group,” said Raymond Redding, deputy head of mail operations, which account for 60 per cent of its Euros 18bn revenues.
However, two unions refused to sign the deal, hinting at further unrest to come, after strikes in September over plans to reduce staff levels and close post office branches, replacing them with “Pointes Postes” in groceries or bakeries.
While La Poste is losing its monopoly, it also faces a shrinking market, eroded by growth of e-mail and electronic payment systems. Its financial and technological performance is lagging behind leading European competitors, Deutsche Post and the Netherlands’ TPG. The agreement with unions aims to boost postal workers’ morale and reduce job uncertainty.
It includes an “exceptional bonus” of Euros 150 to each employee in 2004 and 2005; the transfer of 10,000 postal workers on fixed-length contracts on to permanent contracts and an offer of full-time contracts to 12,000 part-time staff.
Mr Redding said the measures would cost about Euros 120m.
