The Dutch government announced on Friday it will fully liberalise the country’s mail market onApril 1 this year following several delays over the last two years. The move will end TNT’s
remaining monopoly on mail items up to 50g, opening up the most lucrative market segment to rivalsSandd and Deutsche Post-owned Selektmail.The government had already twice set dates to complete domestic postal liberalisation butthen delayed the measure due to concerns over pay levels and working conditions at private mailcompanies along with claims of a lack of a ‘level playing-field’ for TNT in the German and Britishmarkets. However, advances have been made on both issues, the cabinet pointed out in an officialstatement.
Unions and employers, for example, have reached a collective agreement on working conditionsfor delivery staff at new private postal companies, it noted. This agreement has substantiallyimproved social working conditions in the postal sector. Moreover, the government is reserving theright to impose additional measures if the agreement is not kept to.
In addition, there have been “positive developments” regarding VAT in Germany and the UK aswell as important court decisions in Germany, the Dutch government said. These have started aprocess of making the playing-field fairer for new entrants in key European postal markets, itadded.
“All things considered, the government considers that the two conditions have been met andthe postal market can be opened in a socially responsible manner as of April 1, 2009,” it stated.“By ending this monopoly, choice for companies and non-profit organisations will increase, and theycan send post more cheaply. In addition, it creates more opportunities for new companies,”the government said.
In response, TNT said it had taken note of the Cabinet’s intention to liberalise the Dutchpostal market as of 1 April 2009. The first of the two government conditions for fullliberalisation appeared to have been met with a minimum standard for the terms and conditions ofemployment set by General Administrative Order. The provisions of the collective labour agreementfor the sector will have to be tested against the criteria of the General Administrative Order.
“TNT is prepared for full liberalisation and has included the impact in the volume prognosesgiven at the recent publication of the annual results 2008,” CEO Peter Bakker said. “In most othercountries national postal operators are allowed more room to operate. However, the Cabinet does notlonger want to maintain the condition of a European level playing field. This is difficult tounderstand in the worst economic crisis of the last fifty years.”
TNT said it is awaiting the discussion of the General Administrative Order in the Upper Houseof the Dutch Parliament and expects to be invited for future discussions about the collectivelabour agreement for the postal sector.
Sandd, which sees itself as the main challenger in the Dutch market, welcomed the government’s decision, describing it as a “milestone in the history of the Dutch postal market”. “We arepleased that the government has come to this decision,” said Gert-Jan Morsink, CEO of Sandd. “Wehave every confidence that both Houses of Parliament will ratify the decision shortly.”
Against the current economic background, customers would be able to benefit from theadvantages of a free postal market, while social working conditions in the sector had been agreedfor the next four years, he pointed out.
