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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