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TNT Post offers 3% structural wage increase in discussion on market-level conditions of employment
08 April 2008, 23:30 CET - Amsterdam, During negotiations between the trade unions and TNT Post yesterday on a revised collective labour agreement as one of the means of bringing the employment package at the postal company in line with the market, TNT Post offered a structural wage increase of 3%.
The offer comprises a 1.5% salary rise with retroactive effect to 1 April 2008, and a further 1.5% on 1 January 2009. The latter is conditional on the elaboration and implementation of a plan, put forward by a joint working group with representatives from the trade unions and TNT Post, to make fundamental changes to the conditions of employment.
During negotiations it emerged that the trade unions needed more time to discuss the recommendations of the working group with their members. As a result, the trade unions rejected TNT Post’s offer and are standing firm on their initial position of demanding a one-year collective agreement for all of TNT in the Netherlands, with a salary rise of 3.5% with retroactive effect to 1 April. Only once this has been accepted will they be willing to discuss bringing the employment package more in line with the market.
TNT Post and the unions have now been in discussions for a year. In April 2007, TNT Post provided more details on the necessity of achieving an additional 300 million euros in cost savings above those already being generated by earlier plans. These cost savings cannot be achieved through operational efficiency measures alone; the conditions of employment also have to be brought more in line with the market, and additional assisted reemployment measures are required as well to limit job loss. Depending on the chosen solution, between 6,500 and 11,000 employees would be affected.
Following this, at the request of the trade unions, the Boston Consulting Group (BCG) conducted a study into the usefulness and necessity of the previously announced reorganisation plans. On 13 June 2007, BCG confirmed the necessity and soundness of the plans. BCG felt that TNT Post had effectively substantiated its case for the scope of the cost-savings plans it had announced, and that this was essential for the company to achieve its intended profitability objectives over the coming years. BCG went further to say that additional measures might be required in the longer term if the drop in prices and increase in costs turn out to be greater than TNT Post is forecasting presently.
TNT Post and the unions then asked a joint working group to suggest other possible cost-savings measures, and the working group presented its suggestion for an alternative means to achieve these cost savings. Both TNT Post and the trade unions found this an interesting alternative. The trade unions also feel that it is clear that the costs relating to the conditions of employment in operations are drastically higher than elsewhere in the market, and have shown themselves prepared to discuss with TNT the elaboration and implementation of the measures that need to be taken, but they are not prepared to take a stand on this yet.
The trade unions have nonetheless rejected the offer made by TNT and have announced actions. TNT is considering the present situation, but remains firm on the necessity of implementing considerable further cost savings at TNT Post, in line with that which was previously announced. In the period 2007 to 2015, TNT Post wants to achieve a total of 395 million euros annually in cost savings. A considerable portion of this must be achieved through bringing the conditions of employment in line with the market.
About TNT
TNT provides businesses and consumers worldwide with an extensive range of services for their mail and express delivery needs. Headquartered in the Netherlands, TNT offers efficient network infrastructures in Europe and Asia and is expanding operations worldwide to maximize its network performance. TNT serves more than 200 countries and employs more than 161,500 people. Over 2007, TNT reported €11 billion in revenues and an operating income of €1,192 million. TNT is publicly listed on the stock exchange of Amsterdam. TNT recognises its social responsibility, and has formed partnerships with the United Nations World Food Programme and the United Nations Environment Programme to fight hunger and pollution in the world.