Hermes Logistik Group to undercut Deutsche Post by 10-15 pct if minimum wage dropped
Hermes Logistik Group, the postal-services unit of privately held mail-order retailer Otto Group, plans to undercut Deutsche Post AG.’s letter prices by 10 percent to 15 percent should German courts strike down the minimum-wage rule for the industry. Hermes Chief Executive Hanjo Schneider told Die Welt that the group hopes to enter the market for letter delivery still dominated by former monopoly Deutsche Post in January 2009 but legal uncertainties are keeping him from making a forecast.
Should the highest German court squash the minimum wage rule, Hermes will immediately start offering letter delivery from all of its 13,500 German packet receiving offices. A Berlin court ruled in March that a German law imposing a minimum wage at all companies in the letter-carrier industry is illegal.
A higher court will probably rule on the issue in July.
