Deutsche Post World Net CEO Klaus Zumwinkel launched a stinging attack on the state of Europeanpostal liberalisation today and called for the introduction of minimum wages in Germany’s postal
sector.Speaking at the company’s half-year financial results press conference, he criticised therecent decision of the European Parliament to delay full liberalisation until 2011, and grant afurther delay of two years for some countries. He warned that the EU Council of Ministers couldeven delay these dates further. There would be a “three-speed Europe” in terms of postalliberalisation, since five countries (Germany, UK, Netherlands, Sweden and Finland) were alreadyliberalising their markets.
EU parallel liberalization has in fact failed, Zumwinkel said. The now planned unequal andhalf-hearted opening of the market, a process that is characterized by broadly written exemptionsfor most member states, could become a major barrier to Deutsche Post’s further competitivepositioning, he added. “The single postal market with fair conditions has turned into a completemess,” he said. “Deutsche Post is a pioneer in Europe and now is being punished for it.”
On the German domestic mail market, Zumwinkel strongly criticised private competitors for lowpay levels that forced their staff to rely on state benefits for a sufficient income. Thesecompetitors were effectively being indirectly subsidised by the social insurance payments ofDeutsche Post and its employees, he complained.
“Unfair competition through low wages threatens 32,000 jobs at Deutsche Post,” Zumwinkelsaid. “The postal sector needs to be reviewed as part of the current-wage law and specific minimumwages should be defined,” he said. A minimum wage for the postal sector would inevitably be lowerthan the Deutsche Post basic pay of EUR 10.14 but higher than the EUR 6 – EUR 7 paid by rivals, headded.
Zumwinkel reiterated it was essential that Deutsche Post should remain exempt of VAT since itwas the only universal service provider in Germany. Any imposition of VAT at 19% would lead to adouble-digit increase in rates for private customers, he warned.
