Government postpones decision on TNT monopoly

The Government has postponed a decision to open up the sector to allow more talks on workplace conditions.

Government postponed a decision on Friday (28th November) to open up the sector until after more talks on workplace conditions with competitors.

Frank Heemskerk, Economic Affairs State Secretary, welcomed a wage agreement signed earlier this month with TNT’s main competitors, but said talks must still be held with the postal companies and unions to ensure adequate labour conditions once the market is fully liberalised.

He added, in a letter to Parliament, that the government can take “facilitating” measures to help support the sector’s workplace conditions once the market is liberalised.

The Dutch government has always had two pre-conditions on any decision to liberalise its domestic market, namely that labour conditions are adequate and that there is no impediment to competition in neighbouring Germany.

It had previously postponed a decision on liberalisation in May, going against the wishes of Parliament which had urged the government to open the market from January 2009, and Heemskerk did not give a date on Friday when the market might be opened.

Under European Union regulations, the market must be fully liberalised by the start of 2011.

Heemskerk, however, welcomed “favourable developments” in Germany, referring to a decision from the German government last month to end a tax advantage that Germany’s biggest mail delivery company Deutsche Post enjoys against competitors.

Earlier this month TNT’s main competitors in the Dutch market Sandd and Deutsche Post closed a wage agreement with unions.

But TNT rejected the deal as it was still too soft and offered an insufficient basis for solid terms and conditions of employment, the company said.