TPG and unions agree new collective labour agreement

TPG, the largest private sector employer in the Netherlands, and the negotiators for the trade unions ABVAKABO FNV, BVPP, CNV Publieke Zaak and vhp KPN & TPG have reached an agreement on a new collective labour agreement. This collective labour agreement has a term of one year and covers around 68,000 employees of TPG in the Netherlands. As a part of the agreement, arrangements regarding the contributions of both the employer and the employees to the present pension situation have also been agreed, whereby the pension will remain non-contributory for the employees. The trade unions will present the agreement to their members for approval.

Salary increases
The collective labour agreement runs from 1 May 2003 to 1 May 2004. The employees will receive structural salary increases of 2% with effect from 1 June 2003 and a further 0.5% on 1 February 2004.

In addition, the parties agreed to two non-recurring payments of EUR 64 gross for each employee, to be paid subject to a decrease in sick leave at TPG. This first payment, which will be paid in November 2003, is based on a maximum sick leave level of no higher than 5.1% in September 2003. The second payment will be made in March 2004 on the condition that the percentage has decreased to a maximum of 5% by the end of December 2003.

Pensions
Intensive negotiations have been underway between TPG and the unions to restore the necessary coverage ratio of the TPG pension fund. To do this, TPG will make additional payments to the pension fund in the coming years. Both parties agree that both the employer and employees should contribute to this.

The largest share of the required payment will be paid by TPG. On 1 January 2003, the government discontinued the fiscal arrangement of the premium savings scheme. The contribution that the employer would otherwise have made under the discontinued premium savings scheme will now be used for the employees’ contribution to the pension scheme. The pension will remain non-contributory for the employees.

TPG and the unions also agreed that current TPG employees, for the sake of solidarity, will make a significant contribution to the increase of around 1.5% for their ex-colleagues’ existing pensions. This money will be contributed by the employees by having their structural salary increase start at a later date (2% in June 2003 and 0.5% in February 2004).

Work and Health
TPG and the unions agreed that all developments and measures taken to reduce sick leave and the amount of employees being declared unfit for work will be evaluated. Follow-up measures will be taken upon joint consultation.

Additional agreements reached include an age-friendly personnel policy, reintegration after a period of illness and an increase in the childcare budget.

The agreed improvement to the conditions of employment, including the salary increase and non-recurring payments, applies to around 68,000 employees of TPG Post (including Saturday delivery personnel) and TNT in the Netherlands, and for the employees of TPG Head Office.

With its two brands TNT and Royal TPG Post, TPG N.V. is a global provider of mail, express and logistics services. The group employs over 150,000 people in 62 countries and serves over 200 countries. For 2002 the company reported sales of € 11.7 billion, an increase of 5% over the previous year. TPG N.V. is publicly listed on the stock exchanges of Amsterdam, New York, London and Frankfurt.

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