Tag: Germany

Unions meet with TNT and seek dialogue to secure rights for workers globally

UNI along with the ITF, Verdi and the Dutch unions FNV Bondgenoten and Abvakabo, met with TNT management to discuss the unions’ concerns about TNT not adhering to minimum social and labour standards throughout the world. UNI has been running a campaign to support Ver.di in Germany where they are demanding that TNT pay the legal minimum wage that was set for postal workers by the German parliament.

The union delegation also expressed its concern at the apparent support for a “ghost” or “bogus” union that has been set up in the postal sector and which has clearly been funded by at least one of the post companies opposing the minimum wage.

The delegation asked that TNT respect the German minimum wage and that it would agree not to carry out social dumping and to pay decent wages wherever it set up its letter business. TNT said if the German court told it that they must pay the minimum wage they would abide by that decision, however there is now expected to be a considerable number of court actions over some lengthy period as the Ministry of Labour in German appeals the latest decision by a Berlin court.

The Union delegation also insisted that TNT not support any “bogus” unions and deal with real independent unions and to have further discussions with UNI and the ITF on developing a proper global social dialogue and meeting basic labour standards and workers rights while paying socially acceptable wages. TNT agreed to consider this request.

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Allianz seen as favourite to buy Deutsche Postbank

Allianz SE is favoured by Deutsche Post AG and parts of the German government in the tussle over buying Deutsche Postbank AG, Handelsblatt reported, citing banking sources and unidentified members of Postbank’s supervisory board.

The German finance ministry had until a few weeks ago preferred Commerbank AG among Postbank’s suitors but Commerzbank’s ability to shoulder the acquisitions was called into question because the bank’s market value was sapped by financial-market turbulence, the newspaper said, citing unspecified sources.

Deutsche Bank AG has also expressed interest in Postbank, Handelsblatt said.

Handelsblatt said that Allianz’s recently announced plans to split up its Dresdner Bank unit into an investment banking and a private/corporate clients entity is seen by banking experts as a preparatory step for taking over Postbank.

Deutsche Post, Deutsche Postbank, Allianz and Dredner all declined to comment, the newspaper said.

Postbank is controlled by Deutsche Post, whose largest single shareholder is the German government, which owns 31 pct of Post through its development bank KfW Bankengruppe.

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German postal co PIN probed over alleged illegal trade union financing

German prosecutors are investigating allegations that PIN, a private postal company, last year illegally financed the creation of a trade union as part of its failed bid to block minimum wage regulations in the postal sector.

PIN, which is currently in insolvency proceedings, allegedly made undisclosed payments worth about 133,000 eur to the GNBZ postal workers union, which was set up to rival Germany’s largest services union, Verdi.

The GNBZ denied it had been ‘bribed’ by PIN, the Financial Times reported. PIN’s former chief executive Guenter Thiel also denied the allegations.

PIN, which is majority owned by Axel Springer AG, complained last year that a new hourly minimum wage of between 8-9 eur for German postal workers was part of a strategy by incumbent Deutsche Post to squeeze out competition.

A wage agreement between PIN and GNBZ paying staff only 6.50-7.50 eur an hour was invalidated by authorities.

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Should TNT stay in Germany or should it go?

Dutch mail and logistics company TNT NV has more to gain by staying in Germany despite competitive snags as buoyant growth prospects will make up for a shrinking business at home in the Netherlands.

Europe’s second-biggest mail and logistics company by market value, TNT is expected to lose its remaining monopoly in its lucrative domestic market this year, with competitors already eating into its market share and profitability.

It is seeking to reinforce its German operations but has threatened to pull out of the country due to what it sees as preferential treatment for Deutsche Post.

Earlier this month, a German court ruled in TNT’s favour in a case it brought against a minimum wage for postal workers, allowing it to continue paying its lower wage.

Europe’s largest economy introduced a minimum wage of up to 9.80 euros (USD 15.15) per hour for its roughly 220,000 postal workers in January.

The German government said it would appeal against the court ruling, and a verdict could take months, however.

That appeal is hanging over the company and the German postal sector like a sword of Damocles, Dutch daily De Telegraaf quoted Mario Frusch, the chief executive of TNT Post Germany, as saying on Thursday.

He said the company has put its investments in Germany on hold for the time being. TNT Chief Executive Peter Bakker told Reuters in December the company had frozen its investments due to the minimum wage issue.

But TNT needs to take a long-term view of the German mail market, one of the big three in Europe, as it has the potential to drive future growth and offset Dutch losses.

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EU commission criticizes Deutsche Post's VAT exemption

The EU commission is criticizing Deutsche Post World Net AG’s VAT exemption, Frankfurter Allgemeine Zeitung reported, citing a letter the commission wrote to the German government.

EU commissioner Charlie McCreevy has advised the German government not to hamper the opening of the EU’s mail markets by unfair regulation, it said.

Unlike its German competitors, Deutsche Post is exempted from charging value added taxes on its products in return for the universal service it offers to ensure mail is delivered to remote regions.

The German cabinet is set to decide on tax regulations for the German postal market over the coming days, the report said.

While finance minister Peer Steinbruck of the Social Democrats favours maintaining Deutsche Post’s tax privilege, economy minister Michael Glos from conservative bloc CDU/CSU favours abolishing it.

In addition to the VAT exemption, the government last fall decided to make mandatory for its competitors the minimum wages paid at Deutsche Post.

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