Tag: Europe

Germany's CDU party against postal services wage deal applying to whole industry

Posted by | Nov 1, 2007 | |

Germany’s CDU, the senior member of the nation’s two-party ruling coalition, has demanded that an accord between Deutsche Post AG and the ver.di union on minimum wages should not be declared binding for the entire postal services industry.

The collective bargaining agreement cannot be extended, as initially agreed by the government coalition, because it does not cover half of the industry’s employees, Die Welt newspaper cited CDU secretary general Ronald Pofalla as saying.

The Labour Ministry, led by Franz Muentefering from CDU’s coalition partner SPD, insists the bargaining agreement meets the conditions for general validity set forth by the government, Die Welt said.

Deutsche Post Chief Executive Klaus Zumwinkel claims Pofalla is overstating the number of postal services workers, thus underestimating the percentage covered by the agreement, Die Welt reported.

The government in August said it is planning to declare the wage agreement binding for the entire industry, drawing fierce criticism from logistics companies such as PIN Group AG and TNT NV, which are trying to make inroads into the German mail delivery market dominated by Deutsche Post.

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New spare parts centers for sun microsystems located on DHL sites: two companies boost cooperation in Russia

Posted by | Nov 1, 2007 | |

Sun Microsystems Inc. and DHL have announced the results of cooperation in Russia and plans for the future development. The outcome of this cooperation in transport and warehousing logistics has been the creation of a channel for supplies of Sun Microsystems equipment to Russia and other CIS countries. DHL has deployed Spare Parts Centers (SPCs) to support after-sale servicing of Sun customers. The first Spare Parts Center was opened in Moscow in 2002. Three more SPCs for Sun Microsystems were set up in St. Petersburg, Krasnodar and Ekaterinburg in 2007. In the future, DHL projects to offer similar services to other customers as well.

The Spare Parts Center in St. Petersburg was opened in April 2007, in Krasnodar in September 2007 and Ekaterinburg site is planned to be opened in mid November 2007. Sun’s decision to invest in the deployment of the new storehouses has been made with an eye to boost service quality for the regional customers and offer them a choice of service programs, which would guarantee initial after-sale support within the shortest possible period of time (up to 2 hours from submitting the request). It will reduce the equipment downtime to a minimum and enable the customers to utilize Sun’s systems for business-critical objectives.

In January 2006, DHL became the global partner of Sun Microsystems Inc. and the leading logistics provider.

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European parcels operation sparkles despite postal misery for Royal Mail

Posted by | Nov 1, 2007 | |

General Logistics Systems, the European parcels operation, is turning out to be the jewel in the crown for Royal Mail, which has seen profits slashed in its domestic letters business over the past year.

GLS increased its operating profit by 15 per cent to GBP 115m on sales of just over GBP 1bn for the financial year 2006-7. And there was also good news from Parcelforce Worldwide which made an operating profit of GBP 10m – double the figure for last year and the second year running of profit after more than 15 consecutive years of losses.

Royal Mail said Parcelforce Worldwide grew its revenue by 7.3 per cent in a market that became even tougher, and delivered a record operating profit of GBP 10m. GLS grew its revenues by 4.9 per cent in a very competitive market and its operating profit increased to GBP 115m. “The results of both GLS and Parcelforce Worldwide demonstrate the group’s potential in areas where it is allowed to compete freely without regulatory constraint.”

However, profits were slashed from GBP 344m to GBP 194m in the letters business which has also gone through a damaging strike.

“Inland addressed mail volumes fell by 2.3 per cent – the first decline after many years of growth,” said Royal Mail. “The growth in email undoubtedly played a key factor in the fall and the realistic prospect facing the Company is for further volume decline. The peak in mail volumes looks likely to be behind us.”

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Royal Mail does not expect profit from letters this year

Posted by | Nov 1, 2007 | |

Royal Mail group has said its letters business will not make a profit in the current financial year, after revealing its 2006/7 profits fell 44pct to GBP 194m from the service.

Overall, the group’s operating profits, including its international parcel operations and the Post Office network, fell by 55pct to GBP 158m in the year ending March 25 2007.

Overall revenues rose 1.4pct to GBP 9.18bn, and letters revenues were unchanged at GBP 6.86bn, despite a 2.3pct fall in inland addressed mail volumes.

Chief executive Adam Crozier and chairman Allan Leighton claimed, in a statement issued with the financial results, that competition in the postal market had developed more quickly than the regulator Postcomm had thought when it fixed the price control for the company.

They claim competitors picked up one in eight letters posted in 2006/7 and will pick up one in five posted in Royal Mail’s current financial year. This is a level Postcomm forecast would not be reached until 2010.

Another point raised was that the average 13p access fee paid by competitors to use its delivery network does not cover its costs.

Looking at the first five months of the current financial year the statement said revenues are down GBP 78m over the same period last year.

The financial results drew comment from the Communication Workers Union, which after a series of strikes has recently agreed a pay and conditions deal with management that has been recommended to CWU members.

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