German Deutsche Post cancels agencies contracts

Deutsche Post, the German postal service operator, has cancelled its contracts with around 2,000 postal agencies after they refused to accept major changes to their contracts and their remuneration packages. The group, which has until now co-operated with around 8,000 postal agencies, has announced, however, that the cancellation of the contracts does not mean that it will close many of its post offices. Postal agencies are operated mainly by small stationery or food shops in rural areas of Germany. It remains unclear how many of the 2,000 cancelled contracts will result in branch closures. Postal agencies currently account for 8,000 of a total of around 13,000 Deutsche Post outlets across Germany. Roughly 5,000 post offices are operated directly by Deutsche Post. The group is obliged by law to operate 12,000 post offices, which means that it can theoretically close a further 1,000 outlets.