Deutsche Post plans changes in parcel delivery
It is reported that Deutsche Post, the German national postal services provider, is planning to merge the parcel and mail shipment divisions and outsource other divisions of the parcel delivery division to external companies. It is feared that these drastic changes will entail further job cuts at Deutsche Post. From early 2007, the company does not intend to employ its own staff at 280 areas in parcel delivery. It is said that the operating division will be most affected, as so-called joint delivery, that is the combined delivery of mail and parcels by mail deliverers, is to be extended. Redundancies are ruled out until the start of 2008, however, owing to the employment pact agreed with German trade union Ver.di.
The parcel sector has come under great pressure from competition, whereas the mail sector accounts for the majority of the company’s profit. Last year, the company had turnover of 44.6bn euros, of which 12.9bn euros came from the mail division, and 18.3bn euros from the express division, which deals with parcel delivery.
