Tag: Deutsche Post

German Study Looks at Adjacent Postal Markets – 1,500 Companies with a Market Volume of EUR 16.5bn

The Federal Network Agency in 2007 commissioned a research project on the markets for upstream and downstream postal services. It has published the findings today. MICUS Management Consulting GmbH analysed the markets for direct mail, transaction printing, address management, mailroom outsourcing, response processing and document storage, collecting data on market volumes, provider structure, pricing and the intensity of competition. The study also looked at the linkage between the areas analysed. The study found there to be around 500 medium-sized and large companies (more than 10 members of staff) and 800 to 1,000 small companies operating in adjacent postal markets, generating a volume of around €16.5bn. Almost three quarters of this volume is accounted for by direct mail services. Currently, a trend towards outsourcing mailrooms can be observed amongst the customers, while providers are seen to be expanding the value chain to increase their margins and strengthen customer loyalty. To date, there has been little analysis of the markets for upstream and downstream postal services. The MICUS study is one of the first to explore these areas. It was occasioned by the Agency’s desire to gather information on the potential for leveraging market power into adjacent areas, so that it could recognise and assess the potential for abuse.

Study (in German)

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Germany Pin CEO: Minimum-wage deal could threaten postal peers

Small German postal service providers won’t be able to survive and tens of thousands of jobs in the sector will be lost if the planned minimum-wage agreement for the sector were to become generally binding, Guenter Thiel, chief executive of Pin Group.

Pin Group is a unit of Axel Springer AG. Private postal service providers are hoping to grab market share from the largest player, previously- government-owned Deutsche Post, when the German market for postal service will be liberalized next year.

Many large customers are already hesitant to do business with Pin and other Deutsche Post competitors amid uncertainty about the outcome of the minimum wage discussion, Thiel said.

Deutsche Post and labor union Ver.di recently agreed on a minimum wage of between EUR 8.00 and EUR 9.80 for postal workers. Private competitors like Pin Group are demanding a minimum wage of EUR7.50 maximum.

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German cabinet paves way for minimum wage for postal workers

German Chancellor Angela Merkel’s Cabinet agreed on legislation that paves the way for basic rates of pay for postal workers, a move that extends the industries covered by statutory pay levels without introducing a national minimum wage.

The bill is a precondition for agreement between the postal employers’ association and the Ver.di labor union on a basic rate of pay for people who deliver, sort and collect letters. The deal excludes workers delivering packages, newspapers, magazine or books unless they also carry letters.

The regulation became necessary because Deutsche Post AG, Europe’s largest postal service, loses its letter-delivery monopoly at the end of this year, yet other European countries aren’t immediately following suit, Labor Minister Franz Muentefering told reporters in Berlin today.

A statutory minimum wage may be good news for Deutsche Post, which has forecast that domestic competition will trim earnings at its mail division by as much as 20 percent by 2009. The minimum wage regulation would also apply to competitors such as Pin AG.

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Deutsche Post World Net and UNICEF strengthen cooperation in the fight against child mortality

Deutsche Post World Net and UNICEF have drawn a positive assessment of their strategic partnership. DHL has been supporting the United Nations Children’s Fund, UNICEF, in the battle against childhood mortality for the past 12 months.

During the first year of the partnership, the cooperation focused on improving health care for children in Kenya. DHL helped UNICEF distribute around 3.5 million mosquito nets as part of one of the largest health campaigns in East Africa. Furthermore, measures to improve long-term health precautions such as optimizing equipment and the stocking and cataloging of drugs and vaccines in local health centers were also supported.

Deutsche Post World Net will continue its support in Kenya, for example by building a logistics center for medical purposes in the Kwale region. During 2008, the cooperation between Deutsche Post World Net and UNICEF will be expanded on a global scale. Beyond Africa, the corporation henceforth also wants to support joint projects that are part of the UNICEF-Topic “Young Child Survival and Development” in South America and Asia. This topic is part of UNICEF’s five worldwide strategic areas of focus.

The cooperation with UNICEF is part of a long-term partnership between Deutsche Post World Net and the United Nations. Deutsche Post World Net has been supporting the United Nations Development Programme (UNDP) as well as the United Nations Office for the Coordination of Humanitarian Affairs (OCHA) in the area of disaster management since December 2005.

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German cabinet set to approve minimum wage for postal sector

The German grand coalition cabinet is set to approve a minimum wage for the postal deliveries sector when it meets Wednesday, a government spokesman said Monday.

Spokesman Ulrich Wilhelm said he expects the necessary steps will be taken to approve it.

The Social Democrats’ SPD party and the conservative parties CDU and CSU recently clashed over the introduction of a minimum wage parallel to the completion of the liberalization of the letter deliveries market that is scheduled for Jan. 1, 2008.

The Social Democrats had publicly called on Chancellor Angela Merkel to accept the minimum wage as agreed in a previous agenda, despite resistance from the German Economics Minister Michael Glos.

A spokeswoman for Glos said Monday she was confident that a solution could be found Wednesday.

Former monopoly Deutsche Post AG and services union ver.di recently agreed on a minimum wage in a range of between EUR8 and EUR9.8 per hour.

The SPD remains committed to extend minimum wages to other sectors, Hubertus Heil, the SPD’s general secretary said.

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