Tag: Germany

TNT to ask for delay of Dutch postal liberalisation

TNT said it will ask the Dutch parliament to delay liberalisation of the country’s postal market, set for Jan. 1, as a proposed deal on minimum postal wages in Germany would rule out a level playing field in Europe.

“We want to make clear to parliament that there is no level playing field. It is an implicit call to pull the emergency break,” a TNT spokesman said on Friday, referring to a condition in the Dutch postal liberalisation law that allows for possible implementation later.

The Dutch postal law would end TNT’s monopoly on delivering letters of up to 50 grams and is part of a European Union effort to liberalise mail services.

But a wage agreement proposed in Germany would result in higher costs for TNT, making it difficult for TNT’s nascent operations in Germany to become profitable.

TNT competes in the Netherlands with privately held Sandd and Deutsche Post’s Selekt Mail.

Shares in Deutsche Post were up 2.5 percent at 23.29 euros as traders said a German minimum wage would limit market share losses for Deutsche Post in Germany.

German services union Verdi and the postal employers’ association have agreed on a new formula for their wage contract which could open the way to a deal on a minimum wage in the sector, the union said on last Thursday 29th November.

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Deutsche Post transports carbon-neutral mail

Deutsche Post now offers private customers the option of sending carbon-neutral mail. From December 1, 2007, PLUSBRIEF mail will be sent carbon-neutral, at no extra cost for private customers. The PLUSBRIEF product comprises an envelope with its own printed special stamp and is available in practical sets. With the new GOGREEN Service all CO 2 emissions produced during the transport of PLUSBRIEF products will be offset by means of in-house measures or through external projects. Carbon-neutral PLUSBRIEF sets are available at 13,500 Deutsche Post retail outlets or online either at: www.deutschepost.de/efiliale or www.plusbrief.de. In future the PLUSBRIEF sets will carry the GOGREEN logo, too.

The PLUSBRIEF GOGREEN sets are the latest innovation within the CO 2 -neutral GOGREEN product family. Since 2006 private customers have had the option of sending PLUSPÄCKCHEN products CO 2 -neutral by using the additional GOGREEN service. Also, private customers can send parcels CO 2 -neutral by using the online franking service. This service has been available to business customers since 2005 for shipments anywhere in Europe.

Within the Group too Deutsche Post is working hard to improve its environmental record still further. With the implementation of an environmental management system for mail and parcels, a whole series of measures have been launched which will all help dramatically lower CO 2 emissions during transport and reduce power and heating consumption as well as waste. Certification of the group’s integrated quality and environmental management system to DIN EN ISO 9001 and 14001 is scheduled for July 2008.

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TNT gains most in two years on speculation about market opening

TNT NV, Europe’s second-biggest express-delivery company, rose the most in two years in Amsterdam trading following speculation the Dutch government may delay plans to open its mail market.

TNT shares rose as much as 1.24 euros, or 4.6 percent, to 28.10 euros, the biggest increase since Dec. 6, 2005, and were up 4.2 percent as of 11:51 a.m. The stock has fallen 14 percent this year.

An agreement reached by Germany’s coalition government to introduce a minimum wage for postal workers means the Dutch government may “pull the ’emergency brake’ on its market liberalization,” Andrew Beh, an analyst at Bear Stearns in London, said in a note to investors today.

TNT is scheduled to lose its monopoly on mail delivery in the Netherlands starting in January under measures approved by the country’s parliament in June. The opening is tied to a “level playing field” in Europe, which means it may be suspended if other European countries take measures that could hurt competition.

A suspension of the Dutch market opening would remove any “immediate” threat to the company’s mail volumes and earnings before interest and taxes at the mail business, JP Morgan analyst Damian Brewer said in a separate note to investors.

European Union governments agreed on Oct. 1 to require member countries to open up their letter-delivery markets to competition no later than 2011. Eleven of the EU’s 27 member states don’t have to liberalize their markets until 2013.

Standard letters are two-thirds of the EU’s 88 billion-euro postal market and offer twice the profit margin of packages and express mail, according to the European Commission, the Brussels-based EU executive arm.

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Germany inches towards postal sector minimum wage

German services union Verdi and the postal employers’ association have agreed on a new formula for their wage contract which could open the way to a deal on a minimum wage in the sector, the union said on Thursday.

Chancellor Angela Merkel’s conservatives and the Social Democrats (SPD), who rule in an uneasy coalition, have been arguing about the possible introduction of a legally binding minimum wage for the sector for months.

A spokeswoman for Verdi said the new version of the wage contract would apply to companies that “predominantly” transport letters.

The formulation is a response to worries from Merkel’s conservatives that Deutsche Post’s competitors, who pay lower wages, could be hit if a minimum wage of between 8 and 9.8 euros was brought in for the whole sector, as the SPD wants.

If the two parties can agree, the wage could come into effect when Deutsche Post’s monopoly ends at the start of next year.

Verdi’s pay commission still has to approve the proposal.

The two parties have been wrangling for months over which employees a minimum wage should apply to and whether that would amount to half of the number of employees in the sector.

Deutsche Post’s competitors, who include Dutch mail company TNT, have said the suggested minimum wage is too high.

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Eastern Europe loses its luster as companies reverse investment strategies

Migration of manufacturing from Western Europe to Central and Eastern Europe (CEE) has been considered by many to be an irreversible trend. However, a recent survey has found that many companies are pulling back from the region, troubled by rising costs, lack of quality and production issues. This could have major implications for express and logistics companies which have invested in the region.

Since the first wave of countries from CEE became candidates to join the European Union in 2004 it has become generally accepted that there would be a wave of investment in the region, resulting in the migration of production from Western Europe.

There were some very good reasons for that assumption. German manufacturers in particular were attracted by the much lower labour costs and the lack of regulation and bureaucracy compared to their home market. Improving transport infrastructure would mean that they could – in theory – serve their customers just as efficiently from new facilities in countries such as Poland, Czech Republic and Slovakia.

At one stage, a study by consultancy Roland Berger established that around 80 pct of German companies were moving eastwards, with Poland and the Czech Republic being the most favoured locations. By 2004, it was estimated that German subsidiaries employed around 750,000 staff in CEE.

However, the reality of manufacturing in that region seems not to have lived up to expectations. Wage costs have risen significantly and many producers have complained of quality issues, missed delivery deadlines and lack of flexibility. According to the German Fraunhofer Institute, of 6,500 firms which relocated to Eastern Europe, 1,200 have reduced their investment or pulled out completely.

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