German postal co PIN probed over alleged illegal trade union financing

German prosecutors are investigating allegations that PIN, a private postal company, last year illegally financed the creation of a trade union as part of its failed bid to block minimum wage regulations in the postal sector.

PIN, which is currently in insolvency proceedings, allegedly made undisclosed payments worth about 133,000 eur to the GNBZ postal workers union, which was set up to rival Germany’s largest services union, Verdi.

The GNBZ denied it had been ‘bribed’ by PIN, the Financial Times reported. PIN’s former chief executive Guenter Thiel also denied the allegations.

PIN, which is majority owned by Axel Springer AG, complained last year that a new hourly minimum wage of between 8-9 eur for German postal workers was part of a strategy by incumbent Deutsche Post to squeeze out competition.

A wage agreement between PIN and GNBZ paying staff only 6.50-7.50 eur an hour was invalidated by authorities.