Tag: La Poste

Royal Mail and La Poste Privatisation Plans

Posted by | Jul 7, 2008 | |

Both the UK and France are looking at the possibility of part-privatisation of their state-owned postal services although postal unions and some MPs are likely to resist any attempts to privatise, in part or in whole.

In the UK, there is growing concern that the funding of the universal service is being undermined by what some see as an over-zealous drive to introduce competition into the market. The CWU (communication workers union), which repesents the majority of postal workers at Royal Mail, has already hinted at the possible withdrawal of it’s contribution to Labour Party funds if the present government continues to back what it describes as a ‘slash and burn’ policy on postal reform. The union’s present view is that Royal Mail is being run down as an excuse to privatise it.

The European Commission has taken a rather ‘loose’ approach to deciding how the USO could be maintained in a deregulated European postal market by saying that it was up to individual countries to decide how it should be funded. Some argue that in a somewhat grand plan to liberalise postal services quickly, it has effectively ‘passed the buck’ on the USO. Last year saw demonstrations in Berlin from unions concerned about the USO and the impact on jobs.

Neither the UK or France has made any firm committment to privatisation yet, but the idea is likely to find favour with both governments as a way to ease problems in a more competitive market. Directors at France’s La Poste, are said to be keen on the idea of an IPO that would involve 20 percent of the company’s total capital, said to be worth around 10 billion euros.

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Erik Olsson resigns from Posten AB

Posted by | Jun 27, 2008 | |

Erik Olsson, President and CEO of Posten AB, and proposed President and CEO for the merged company with Post Danmark, leaves his position immediately due to lack of confidence from the Board.

Lars G. Nordström is appointed President and CEO of Posten AB. He will also lead the task of preparing for the integration with Post Danmark. Lars G. Nordström is a member of the Board of Nordea, where he was President and CEO until 2007. He is also a member of the board of TeliaSonera and VikingLine.

The process to recruit a permanent President and CEO will begin immediately.

Accord to contract, Erik Olsson has the right to 12 months notice in case of dismissal. He is also entitled to a severance pay equal to one year’s salary. The severance pay will be deducted against employment income. Olsson will be at the company’s disposal during his period of notice.

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Commission announces crackdown on mail monopolies

Posted by | Jun 26, 2008 | |

Speaking at a high-level conference on postal liberalisation on Tuesday (24 June), the EU’s commissioners for competition and the internal market warned countries with lingering postal monopolies to open up or face legal action.

“We will not hesitate to use all means at our disposal to make a competitive and sustainable postal market a reality,” said EU Internal Market Commissioner Charlie McCreevy, warning governments not to introduce what he called “creative market barriers” under the pretext of safeguarding basic mail services for all.

Such measures will undoubtedly include infringement procedures against member states that are “backtracking” on their pledges to liberalise the postal market fully, said Competition Commissioner Neelie Kroes. “You know me, I will enforce competition rules in the postal sector […] Regulation is not enough,” she said, highlighting the fact that she had already sent a formal notice to Slovakia on 18 June regarding its plans to “re-monopolise certain sectors of its postal market”.

The strong statements come a surprisingly short time – just four months – after the EU pushed through legislation, which only commits member states to full liberalisation of their mail markets by 2011 at the earliest.

They appear as a testimony of Brussels’ commitment to full market opening amid growing apprehension at the national level as to the concrete effects of full liberalisation on employment and the provision of a quality service for all.

Although no names were cited, Germany appears to take the brunt of the Commission’s discontent, with its plans to introduce a minimum hourly wage of EUR for postmen operating on its territory in order to prevent social dumping.

The move has sparked a big dispute with the Netherlands, where Dutch Junior Economy Minister Frank Heemskerk retaliated by delaying his country’s own planned 1 January 2008 liberalisation until a “more level playing field” was established – a move also under fire from the Commission.

Both Germany and the Netherlands have received letters from the commissioner in which he voices such concerns. So have Finland, Austria, the Czech Republic, Belgium and Poland – making them all potential targets for legal action. The complaints cover a wide range of practices – from Finland’s charges on new entrants that do not agree to provide nationwide services or Belgian plans to simply force all new operators to deliver across its whole territory to Austria allowing its national operator to install key access to private letter boxes in apartment hallways.

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European postal operators express support for fair level playing field

Posted by | Jun 25, 2008 | |

Further to the European Commission high level conference on Postal services on 24 June, 11 signatory postal operators from Belgium, Cyprus, France, Greece, Hungary, Italy, Latvia, Luxembourg, Malta, Poland and Slovakia express their support for the next steps towards Full Market Opening (FMO) of the European postal market under the balanced conditions embodied in the third postal directive.

The two key principles for the signatory operators are first and foremost the creation of mechanisms able to ensure the financing of the Universal Service Obligation (USO) all over the EU territory under FMO conditions, and the establishment of a true level playing field in all aspects, including social conditions.

In this perspective, the Member States have the responsibility to ensure balanced national regulatory frameworks that take into account the two mentioned principles.

Confronted with an uncertain economical environment where the question of financing or sharing the universal service is still under debate, the signatory operators call for special attention to the sustainability of the universal service and the postal market in its entirety. A study carried out in 2007 by the independent consulting firm Oxera demonstrated that the fundamental policy question to be asked is how the universal service obligations are to be financed.

The 11 signatory operators will continue to contribute to the implementation process in a positive and constructive manner, and with strong vigilance upon safeguarding the provision of universal service and the implementation of a level playing field.

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