PostNL and trade unions agree labour deal for delivery staff

Dutch postal service PostNL says it has reached a deal with the trade unions over a new contract for mail delivery staff, subject to ratification. The collective labour agreement with BVPP, Abvakabo FNV and CNV Publieke Zaak will include increased salaries and an allowance to help with living costs.

The contract takes effect retroactively from the start of this year, and runs until the end of September 2015.

From the start of next year, a new salary grade will be introduced for delivery staff above the age of 23 who have been working at least five consecutive years at PostNL.

First and second pay grades are expected to see salaries rise by 0.8% from 1 January 2014, and a further 0.9% from 1 July 2014. A further 0.9% increase will follow from 1 January 2015.

A further 0.4% salary increase for first, second and third salary grades will take effect from 1 July 2015.

PostNL said it will also provide a EUR 70 sum for delivery staff each year from 1 April 2015 for delivery staff who have been employed at least six months.

The company said unions have also agreed to a new method for claiming vacation time and overtime.

The collective labour agreement still needs to be approved by the union membership, which is to hold a meeting in October.

“Appreciation”

Albert Rodenboog, the PostNL production director, said: “This new CLA agreement in principle offers particular benefits for the mail deliverers who have worked for us for a longer period of time, to underline our appreciation for them. The agreement is also in line with our objective of keeping the cost level of our employment benefits manageable, with a view to a healthy and solid future for our postal company.”

PostNL, which is listed on the NYSE Euronext stock exchange in Amsterdam, makes around EUR 2.2bn a year in revenue from its domestic mail services, with the revenue declining 4.8% last year as mail volumes fell by 11.9%.

The domestic mail business has improved its profit margins from 0.9% to 3.2% in 2013 thanks to a restructuring programme that has seen PostNL reducing the size of its delivery network from 260 preparation locations to 145 last year, and relying more on part-time labour.

But, expectations are for mail volume declines to worsen going forward, resulting in a continuing need to cut costs.