Dutch aim for postal liberalisation on July 1

The Dutch government hopes the postponed liberalisation of the mail market, originally due in January, will come into force on July 1 depending on developments in Germany and Dutch labour negotiations.

Dutch Junior Economy Minister Frank Heemskerk said in a letter to parliament published late on Monday he hoped to have a clearer view on both matters by the middle of April.

“I hope it can then be concluded, taking into account the necessary caution, that it remains possible for the new postal law to come into effect on July 1, 2008,” he said.

The Netherlands decided in December to postpone the full opening of its mail market partly because of fears that a German minimum wage for postal workers impedes competition there after Deutsche Post lost its remaining monopoly on Jan. 1.

Dominant Dutch mail company TNT had hoped to expand in Germany but says it cannot compete effectively with Deutsche Post because the minimum wage per hour is too high.

TNT has sued the German state at a court in Berlin and Heemskerk said he would report back to parliament on an expected ruling in early April after a hearing on March 7.

He also noted Dutch postal companies were due to hold talks with workers in March about labour conditions in the Netherlands and said he would follow these talks closely.

The FNV trade union says the Netherlands should only open its postal market to full competition when all workers get minimum wages and have labour contracts.

TNT’s workers have employment contracts, but rivals privately-owned Sandd and Deutsche Post’s Dutch unit Selekt Mail usually do not offer contracts and pay postal workers by the number of items delivered.

Rabo Securities said in a note it did not expect the government would meet the July 1 date as the outcome of the German court case was highly uncertain and it doubted whether Dutch unions would reach a deal in time.

“From sources in the market, we understand that negotiations are progressing slowly. Especially the challengers Sandd and SelektMail are unwilling to sign a collective labour agreement, as long as there is no clarity on the liberalisation,” it said.

TNT has the remaining monopoly for letters up to 50 grammes in the Netherlands, estimated to be worth about 1 billion euros (USD 1.5 billion) in 2007.

The Dutch government hopes the postponed liberalisation of the mail market, originally due in January, will come into force on July 1 depending on developments in Germany and Dutch labour negotiations.

Dutch Junior Economy Minister Frank Heemskerk said in a letter to parliament published late on Monday he hoped to have a clearer view on both matters by the middle of April.

“I hope it can then be concluded, taking into account the necessary caution, that it remains possible for the new postal law to come into effect on July 1, 2008,” he said.

The Netherlands decided in December to postpone the full opening of its mail market partly because of fears that a German minimum wage for postal workers impedes competition there after Deutsche Post (DPWGn.DE: Quote, Profile, Research) lost its remaining monopoly on Jan. 1.

Dominant Dutch mail company TNT had hoped to expand in Germany but says it cannot compete effectively with Deutsche Post because the minimum wage per hour is too high.

TNT has sued the German state at a court in Berlin and Heemskerk said he would report back to parliament on an expected ruling in early April after a hearing on March 7.

He also noted Dutch postal companies were due to hold talks with workers in March about labour conditions in the Netherlands and said he would follow these talks closely.

The FNV trade union says the Netherlands should only open its postal market to full competition when all workers get minimum wages and have labour contracts.

TNT’s workers have employment contracts, but rivals privately-owned Sandd and Deutsche Post’s Dutch unit Selekt Mail usually do not offer contracts and pay postal workers by the number of items delivered.

Rabo Securities said in a note it did not expect the government would meet the July 1 date as the outcome of the German court case was highly uncertain and it doubted whether Dutch unions would reach a deal in time.

“From sources in the market, we understand that negotiations are progressing slowly. Especially the challengers Sandd and SelektMail are unwilling to sign a collective labour agreement, as long as there is no clarity on the liberalisation,” it said.

TNT has the remaining monopoly for letters up to 50 grammes in the Netherlands, estimated to be worth about 1 billion euros (USD 1.5 billion) in 2007.