The Berlin Administrative Court has dealt a blow to the controversial German postal minimum wage byruling that the law imposing it on the entire sector violates the German constitution, and that TNT
Post is not bound by it.In November 2007, the postal minimum wage of €9.80 was concluded between trade union ver.diand the Deutsche Post-dominated Employers’ Association for Postal Services. In the opinion of thecourt, the Minister of Labour and Social Affairs was not allowed to declare this wage generallybinding.
The new decision means that TNT Post is not obliged to pay the too high minimum wage underthe ordinance passed by the government. However, the German state has, as expected, already filedan appeal against the decision of the court. The appeal process may take at least six months.
TNT Post Germany said it will continue to pay the minimum wage to which it is bound under thecollective labour agreement for value added services, as agreed by the Employers’ association fornew postal and delivery services. At €7.50, TNT Post is paying exactly the minimum wage demanded bythe German trade union ver.di, the Federation of German Trade Unions (DGB) and the SocialDemocratic Party of Germany (SPD) for many years.
“We are pleased that our interpretation of the law has been confirmed,” commented MarioFrusch, CEO of TNT Post Germany. “However it can only be seen as a first step towards a levelplaying field; alongside the postal minimum wage, the VAT exemption presents another significantbarrier to competition that needs to be broken down.”
“Minimum wages must be in line with the cost of living, but should not be abused to inhibitcompetition and protect a monopolist”, he added.
