Switzerland plans full postal liberalization in two stages

Swiss Post Swiss authorities have released plans to fully liberalize the country’s postal market in two stages over the coming decade, and change Swiss Post’s legal status. The move means Switzerland will lag behind most EU countries in fully opening up the domestic mail market to competition.

The federal government plans to publish a postal reform bill for consultation at the start of 2008. It is expected to propose reducing Swiss Post’s monopoly on domestic mail from 100g to 50g in 2011. “After a period of two to five years, Parliament would pass a law on full-scale liberalization that would be liable to public referendum,” the Swiss ministry for environment, transport, energy and communications announced on Friday.

Swiss authorities noted that they had already started to reform the postal sector and were following developments in the EU, where the postal market is due to be fully liberalized in 2011. The ministry will also conduct a study into the financial implications of the market liberalization and publish the results by the end of this year.

The draft law would specify “industry-typical” working conditions for all postal operators (Swiss Post and private competitors). Swiss Post would be required to negotiate a collective tariff agreement but it would be up to companies and unions to agree on an industry-wide pay deal. Financing of the universal service obligation would if necessary be secured through a fund or state payments, the ministry stated.

Swiss Post would be reformed from a public corporation into a limited stock company with a legal requirement for majority state ownership. This would enable Swiss Post to cooperate with other companies in Europe and enter into alliances.

In response, Swiss Post declared that it supported the measures to gradually open up the market with fair market conditions, and that it was committed to retaining a quality postal service for the country’s public and business.