Deutsche Post to cut 8,000 posts by 2004

Deutsche Post to cut 8,000 posts by 2004
From AFP ENGLISH, May 22nd, 2001

ATTENTION – RECASTS, UPDATES figures ///

FRANKFURT, May 22 (AFP) – The German postal service, Deutsche Post, said
Tuesday it would eliminate 8,000 posts by 2004 in its mail transport division
and subcontract the activity.

The job cuts had been adopted in agreement with the works committee and
unions, the company said in a statement, which updated an earlier total of 7,
500 provided by a company spokesman.

“We have reached an accord with the unions,” the spokesman for the partly
privatised company told AFP earlier following a report on the job losses in
the Financial Times.

“Only transports between our postal centres will be affected,” the
spokesman added.

The plan aimed at reducing salary costs by 100 million euros (88 million
dollars) per year, Deutsche Post said. The job cuts would be achieved without
sackings, it added.

Postal employees are protected until 2004 under an accord reached with
unions last year, and voluntary resignations will account for some of the
eliminated posts.

Although final distribution of mail will still be handled by postal
employees, collection and transport to regional centres will be done by
subcontractors.

Many drivers will also to be relocated in the distribution division, which
is currently understaffed.

At the end of 2000, Deutsche Post, which began floating shares on the
Frankfurt bourse in November, employed 280,000 workers.

A week ago, the group announced that first-quarter net profit had fallen by
5.9 percent to 539 million euros compared with the first three months of 2000.

ahe/djw/ptAFP ENGLISH, 22nd May 2001