Court opposes minimum wage in German postal sector
A German administrative court said on Friday a minimum wage introduced in the country’s postal service did not conform with the law, handing a victory to competitors of Deutsche Post
The court said the minimum wage violated the basic rights of the plaintiffs, who are competitors of Germany’s main postal delivery firm and former state monopoly Deutsche Post.
Dutch mail company TNT NV and Germany’s mail services group PIN had taken legal action over Germany’s minimum wage, arguing it should not have been declared universally binding.
Europe’s largest economy introduced a minimum wage of up to 9.80 euros per hour for the country’s roughly 220,000 postal workers in January.
The German Labour Ministry said it would appeal the ruling.
“The government and Bundestag (lower house of parliament) decided last year to accompany the full opening of the letter market with a minimum wage,” it said about the introduction of the pay floor, which coincided with the end of Deutsche Post’s remaining monopoly for letters up to 50 grams.
Supporters of the minimum wage say public discontent about income inequality in Germany is growing, arguing that domestic demand needs a boost and that Deutsche Post’s competitors should not base their business models on workers earning a pittance.
But business lobbies say the minimum wage level favours Deutsche Post, which handles over 90 percent of letter deliveries in Germany and thus has huge advantages of scale.
Germany does not have a nationwide minimum wage. It is opposed by Chancellor Angela Merkel on the grounds that it would create new problems and could put jobs at risk.
A German administrative court said on Friday a minimum wage introduced in the country’s postal service did not conform with the law, handing a victory to competitors of Deutsche Post
The court said the minimum wage violated the basic rights of the plaintiffs, who are competitors of Germany’s main postal delivery firm and former state monopoly Deutsche Post.
Dutch mail company TNT NV and Germany’s mail services group PIN had taken legal action over Germany’s minimum wage, arguing it should not have been declared universally binding.
“The application of the minimum wage to the entire postal sector does not conform with the law,” the court said.
Europe’s largest economy introduced a minimum wage of up to 9.80 euros per hour for the country’s roughly 220,000 postal workers in January.
The German Labour Ministry said it would appeal the ruling.
“The labour and social affairs ministry considers the decision wrong,” it said in a statement.
“The government and Bundestag (lower house of parliament) decided last year to accompany the full opening of the letter market with a minimum wage,” it said about the introduction of the pay floor, which coincided with the end of Deutsche Post’s remaining monopoly for letters up to 50 grams.
Supporters of the minimum wage say public discontent about income inequality in Germany is growing, arguing that domestic demand needs a boost and that Deutsche Post’s competitors should not base their business models on workers earning a pittance.
But business lobbies say the minimum wage level favours Deutsche Post, which handles over 90 percent of letter deliveries in Germany and thus has huge advantages of scale.
TNT welcomed the court decision.
“It is a good day for German economic climate, also a good day for TNT,” said TNT spokesman Pieter Schaffels.
“We can continue with the way we are paying. That is 7.50 euros per hour,” he said
However, he said that because of uncertainty linked to the German government’s plans to appeal the ruling, TNT would continue to review its business in Germany.
Germany’s AGV-NBZ employer group for new companies in the postal sector was upbeat about the court ruling.
“The decision is a positive signal for the competitiveness of our member companies and their jobs,” the group’s president, Florian Gerster, said. “Now our companies can breathe again.”
Germany does not have a nationwide minimum wage. It is opposed by Chancellor Angela Merkel on the grounds that it would create new problems and could put jobs at risk.
