Deutsche Post's Zumwinkel wanted to step down after RegTP decision
Zumwinkel at the beginning of the week considered stepping down as a reaction to the German postal regulator RegTP’s decision to force cuts for postal rates, Sueddeutsche Zeitung reported.
Citing sources close to the chairman, the paper said that it was only due to the persuasion by management board members that Zumwinkel decided not to resign.
Zumwinkel was enraged over the forced rate cuts, which in his view are politically motivated just before the general elections in September, said the paper.
The price cuts also represent an additional burden for DPWN after the European Commission told the company to repay 572 mln eur which has been used to subsidise price undercutting in commercial parcel services, Sueddeutsche said.
DPWN said yesterday it calculates that revenues and earnings should decrease by a total of around 1.5 bln eur for the whole of 2003-2007 should RegTP’s decision be implemented as envisaged.
It added that sales in 2003 alone will be down by 300 mln eur if the measures are implemented. In response Deutsche Post may increase prices in certain areas, close branches, and cut up to 10,000 jobs, it said.
