Tag: Mail Services

EU commission criticizes Deutsche Post's VAT exemption

Posted by | Mar 19, 2008 | |

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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Royal Mail pension plans rejected

Posted by | Mar 19, 2008 | |

Royal Mail managers have voted to reject the company’s proposed pension changes, increasing the threat of strike action.

Unite advised staff to reject the plans and 85% of those who voted in a ballot agreed with the union.

Royal Mail plans to cut the value of its pension scheme for new and current members and raise the retirement age.

Unite said it would now consider a ballot for industrial action if the issue was not dealt with by Royal Mail.

Unite national secretary, Paul Reuter, said: “This is a massive rejection of Royal Mail’s decision to reduce the future pensions of thousands of working people.

“It would be absolute folly if the business were to ignore their loyal staff.”

But he stressed that the union did want to rush into a strike.

The main trade union at the Royal Mail, the Communication Workers Union (CWU), is holding a workplace ballot of its own members to judge their opinion. This ends on 25 March.

But a Royal Mail spokesman said the proposed changes were essential to deal with a deficit of GBP 3.4bn in the pension scheme.

“After discussions on pension change which began nearly a year ago, the unions, including Unite, signed a deal with Royal Mail fully agreeing the essential changes to the pension plan which are taking effect on 1 April.

“Royal Mail is determined to ensure that everyone in the company has the best possible pension that the company can afford but we have no alternative but to reform the pension plan,” he added.

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Swiss Post International continues success in cross-border business

Posted by | Mar 19, 2008 | |

Swiss Post achieved excellent results again in 2007. With group profit of 909 million Swiss francs (EUR 551 million), it beat the previous year’s figure by 72 million (EUR 44 million). Operating income rose by over 800 million francs (EUR 485 million) to 8,712 million (EUR 5,280 million). The international division, Swiss Post International, increased its operating income by 6 per cent to 1,145 million francs (EUR 694 million) and contributed 34 million francs (EUR 20.6 million) to the overall group profit.

Operating exclusively in the mail, parcel and express business, Swiss Post International (SPI) increased its revenue again in 2007. Having exceeded the billion mark in revenue the previous year, it achieved a further rise of 6 per cent in the last year to 1,145 million francs (EUR 694 million).

In the last year, SPI has been driving forward the expansion of its international network, which included the opening of a sales agency in Denmark at the end of March 2007. In October 2007, SPI became privileged sales partner of the German Hermes Logistics Group (HLG) for international B2C traffic in the European markets. Previously, SPI sold 30 per cent of its shareholding in Italian parcel and logistics company, Swiss Post Porta a Porta, to HLG. At the beginning of 2008, SPI also acquired the Swedish letter processor, IMS Europe AB, strengthening its position as a provider in the Swedish postal market. To strengthen its customs expertise, SPI took over FM Verzollungs AG in Basel on 1.1 2007.

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Post Office Consultation

Posted by | Mar 18, 2008 | |

Billy Hayes, General Secretary of the Communication Workers Union has lent his support to London Mayor Ken Livingstone, who intends to begin a legal challenge over the closure of 171 post offices in the capital by Post Office Ltd.

Hayes has also been critical of the way in which competition has been introduced to the UK’s postal market and has been urging the government to carry out a full review of postal deregulation. Of the closures, Mr Hayes said:

“This is a proportionate response to scandalous behaviour by Post Office Ltd which seems determined to strip the country of Post Offices. The consultation has been completely inadequate, failing to seriously consider individual cases and the effect that so many closures will have on the network as a whole. London has been hit particularly hard by the closure programme and we fully support Ken Livingstone’s actions to defend this vital public asset.”

The Communication Workers Union is currently balloting union members over changes to the pension provision at Royal Mail which could see final retirements move from age 60 to 65. Many workers claim that the physical nature of the job plus an increasing workload, would mean that many would not be fit enough to work to the age of 65. Hayes indicated that the CWU, on advice from members, may step up their campaign.

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London Mayor Ken Livingstone mounts legal challenge over post office closures

Posted by | Mar 18, 2008 | |

Royal Mail’s plans to close 2,500 post offices could be thrown into disarray after the Mayor of London said yesterday that he would mount a legal challenge in the capital.

If Ken Livingstone is successful, other local authorities across the country could come under pressure to start similar action. He is seeking a judicial review of the closure of nearly 200 post offices in London because of the impact on local communities.

The closure programme across the country, which is being rolled out regionally, has been controversial because Royal Mail’s Post Office division is only allowing a six-week public consultation period.

Post office branches and communities have complained that this is far too short a time to take effective action. The Commons Business and Enterprise Select Committee has also attacked the closures as rushed. There has also been concern because the closures are compulsory and often opposed by the sub-postmasters.

In London, closures have caused more controversy because many post offices are profitable and well used, unlike some in rural areas where they do not get very much trade.

Mr Livingstone said: “Communities in every part of London, especially the most vulnerable people, depend on their local post office. Post Office Ltd has not provided adequate time to consult on its proposals, leaving me with no alternative but to ask lawyers to seek leave to challenge their decision to close 171 post offices in London through a judicial review.”

He said that over the past seven years the number of post offices in London had been cut by 45 per cent while the number of people in the capital had increased. “Now is not the time to be closing post offices but expanding the service.”

Billy Hayes, general secretary of the Communication Workers Union, said: “This is a proportionate response to scandalous behaviour by Post Office Ltd, which seems determined to strip the country of post offices. The consultation has been completely inadequate. We fully support Ken Livingstone’s actions.”

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