The Dutch government has hammered out a compromise agreement paving the way for full liberalisationof the domestic postal market on January 1, 2008. TNT will then face competition from Deutsche
Post-owned Selektmail and privately-owned Sandd in the lucrative small letters mass market.A postal reform bill due to remove TNT’s monopoly on letters up to 50g with effect fromJanuary 1, 2008, was delayed in the Dutch Parliament in April over demands to include employmentstandards in the legislation. Labour MPs had criticised the business models of Sandd and Selektmailwhich do not pay basic salaries but which pay delivery staff according to volumes delivered.
At a cabinet meeting last week, the three-party coalition government, which includes Labour,agreed not to write minimum employment standards into the new postal law, Dutch media reported.
But the government would have the right to enforce standards later if postal companies,including TNT’s “low-cost” subsidiary Network VSP, did not seal collective agreements with postalunions.
The postal reform bill is now expected to pass through the Dutch Parliament shortly.
