Deutsche Post in uproar over planned market changes
At the end of this year, the remains of Germany’s postal monopoly are slated to be fully dismantled. But Deutsche Post says it faces a less-than-level playing field and unfair competition on the open market.
This means that starting in 2008, Finland’s postal system, for example, can expand into Germany, where the Finnish companies can concentrate on lucrative big-city markets. While facing competition from abroad in the cities, Deutsche Post will also be left to deliver mail to German rural regions — a costlier and more difficult service to provide. If Deutsche Post wants to deliver mail in Finland, however, it will be obliged to fork over 20 percent of its turnover to the Finnish state.
It is that kind of scenario, what Deutsche Post calls a very uneven playing field that is causing uproar at the former mail monopoly. The German mail carrier has a legal obligation to provide universal service, covering routes that are money making as well as those that are not.
Since the partial break up of the German postal monopoly in 1998, Germany’s governing post and telecommunications body has granted some 1,000 business licenses for delivering mail. Unlike employees at Deutsche Post, the mail carriers for these start-ups are often part-time or temporary workers, who don’t enjoy the job security or compensation rates of Deutsche Post employees.
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