Redundancies possible at Deutsche Post subsidiaries

Deutsche Post, the German postal service operator, is not expecting a speedy agreement with the services sector union Ver.di regarding planned restructuring, as redundancies are possible for the first time in the company’s history with the merger of the German activities of subsidiaries Danzas, DHL and Euro Express. It is estimated that 1,600 out of 10,000 jobs in the three subsidiaries will become obsolete.

While an agreement rules out redundancies for employees of parent Deutsche Post AG before March 2008, the agreement does not apply to employees of subsidiaries such as DHL. However, management has indicated that the group will aim, as far as possible, to solve the problem through acceptable means such as natural wastage and internal transfers.