Deutsche Post cuts payments to parcel delivery sub-contractors

Deutsche Post has cut back payments to sub-contractors delivering parcels in Germany by up to15-20% under cost-cutting measures, German media have reported.

The company said that agreements had been made with nearly all sub-contractors but stressedthat the new pay levels for drivers were above the minimum wage level of EUR 7.50 per hour demandedby the Verdi union.

Deutsche Post uses external companies to deliver parcels in 880 out of 7000 delivery areas inGermany under a pilot project agreed with Verdi. In all other delivery areas, parcels are deliveredby DPWN employees covered by the group tariff agreement.