Swiss Post has been forced to drop plans to merge its parcels division into its logisticssubsidiary for legal reasons.
The national postal operator had planned to transfer the PaketPost division into its 100%subsidiary PostLogistics AG from January 2007 to rationalise costs and offer customers one-stoplogistics services. With annual revenues of some Sfr 1.2 billion (€770 million) and some 5,500staff, PostLogistics AG would have become the largest logistics company in Switzerland.
But a Swiss Post-commissioned report from the Swiss federal justice authority concluded thatthis reorganisation was not permissible under current legislation on the universal postal service.The postal group is obliged to carry out all universal postal services itself and may not outsourcethem even to a 100% subsidiary, the report said.
Swiss Post said in a statement that in view of the clear legal position in the report it haddecided not to proceed with the integration of PaketPost in PostLogistics but seek a new way toachieve the aims of the merger through the PostLogistics brand. In contrast, the legal reportconfirmed that the reorganisation of the smaller express business into ExpressPost AG was in linewith relevant legislation.
The PaketPost division provides domestic parcel services, ranging from courier and expressdelivery to standard parcel and freight transportation. In 2004, it carried 112 million parcels,representing a 76% domestic market share, had revenues of CHF 1.4 billion and an operating profitof CHF 74 million. It had some 6,000 staff whose working conditions are covered by laws on Swissstate employees. Swiss Post cooperates with GLS for international parcels and with TNT forinternational express items.
The PostLogistics AG, based around several private freight firms acquired in recent years,operates in competition with Swiss and international transport operators, with employees on normalcontractual terms. Products range from in-night and express delivery to heavy freighttransportation and added-value logistics services.
Swiss Post added it expected the Swiss upper house to discuss the future structure of the Swisspostal market this spring, including the issue of how Swiss Post could react to changing marketconditions with new organisational forms.
