Deutsche Post seal union deal

Deutsche Post DHL sealed a wage deal with the Verdi union on 30 October; heading off strikes during the important Christmas holiday season, reports Reuters. The article continues:

Deutsche Post and Verdi agreed to extend the existing wage contract to the end of 2011, while also settling for further outsourcing of parcel-delivery services, Verdi said. Letter carriers will also forego overtime pay until June 2011.

In return, workers will get a 3% wage increase in December without having to work longer hours as well as a one-off payment of 320 euros in 2011. The new agreement prevents Deutsche Post from cutting jobs before the end of 2011.

The deal will lead to cost savings of about 140m euros ($207.5m) next year and 230m euros in 2011, Deutsche Post said.