Tag: Europe

Deutsche Post faces Germany-wide strikes starting next month

Deutsche Post AG may face strikes across Germany next month after the company failed to reach agreement on pay and working hours with the Ver.di labor union.

Ver.di plans to vote on open-ended strikes from April 25 to April 29, which would allow them to start on May 2, Guenter Isemeyer, a spokesman for the union said today by telephone.

Deutsche Post offered a 5.5 percent pay raise over two years and extended job security to workers until June 30, 2011, in return for increasing the workweek by 30 minutes, the Bonn- based company said April 19. Deutsche Post also wants to reduce workers’ break-time, adding an extra 2 1/2 hours work a week, Isemeyer said. The union has demanded a 7 percent wage increase.

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Deutsche Post: ver.di rejects very good offer

Deutsche Post made ver.di a very attractive offer, according to which dismissals protection would be extended to June 30, 2011 and contractual employees’ wages would be increased by around 5.5 percent over the next two years.

In return, employees’ working hours would be moderately increased. That means that employees would work an extra half hour each week, or six minutes more each day. Civil servants will work 40 hours a week instead of 41 in the future, that’s one hour less than is usual for German federal civil servants and has been in force at Deutsche Post since April 1st ver.di rejected this offer.

Walter Scheurle, Board Member, Personnel, commented: “Whoever rejects 39 months of dismissals protection and a reasonable salary increase in exchange for a working-hours increase of six minutes per day, definitely does not represent the interest of our employees.”

Deutsche Post emphasized its readiness to continue with the employment pact and thus its commitment to job security as well as to a salary increase that is attractive to employees, but at the same time economically viable. This precludes that the social partner is prepared to discuss an increase in working hours.

According to the assessment of Deutsche Post, job security assurance and the proposed salary increase correspond to the paramount interests of employees. The stubborn attitude of ver.di in regard to the working hours issue is obviously based more on dogmatism and in strategic and image goals than anything else.

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European discontent over earnings divide

The present credit, food, and fuel crisis in Europe is sparking anger from unions and workers across Europe who says that the divide between rich and poor is becoming wider than ever and that the ‘fat cat’ culture continues to spread unchecked across many industries where employees are often paid relatively low wages.

Workers at Germany’s Deutsche Post are to begin strike action in May after the Verdi trade union failed to secure a 7 pct pay rise for 130,000 postal workers. Deutsche Post said it was always ready to talk but the 7 pct rise put forward by the union was unaffordable. Verdi has recommended that workers begin strike action early next month.

In the Netherlands, trade unions are planning to step up the pressure on the Dutch mail company TNT, with strikes next week to support their call for a 3.5 percent wage rise. In Slovenia, protesters were on the streets protesting about low pay and fat-cat companies in Europe.

In the UK, PM Gordon Brown is trying to placate members of his own party over the scrapping of the 10 pct income tax rate for low earners. The move has been seen as deeply unpopular and at odds with Labour’s claim to support the poorest citizens. With Labour already struggling in opinion polls ahead of local elections on May 1st, Labour MPs are becoming worried that they could see their seats go over what are national issues. In the public sector, unions say that wage caps, typically around 2.5 pct in the UK are now insufficient to match the increasing cost of energy and other rises in the cost of living.

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Postcomm – financial penalties

Postcomm has revised its statement of policy in relation to financial penalties (‘statement of policy’).

Under the Postal Services Act 2000, Postcomm has the discretionary power to impose a financial penalty on a licence holder that has contravened – or is contravening – one or more of its licence conditions. Postcomm must prepare and publish a statement of policy, in relation to imposing a penalty and the amount of that penalty.

Postcomm published its current statement of policy in February 2002. Since then, Postcomm has imposed four financial penalties on Royal Mail and there have been a number of significant changes in the postal services market, including the full opening of the market in January 2006 and the adoption of a new price control for Royal Mail in April 2006. Postcomm said, at the time the statement of policy was introduced, that it would consider revising the statement in the light of experience in its application. Postcomm decided that it should consult on revising its statement of policy.

The consultation document was published on 8 August 2007 and sought views on a proposed revised statement of policy.

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