Dutch unions agreed this week that postal workers face a choice between pay cuts or heavy joblosses in order to reduce TNT Post’s operating costs in response to falling volumes and tougher
competition.A report on cost-saving options at TNT Post by research company Ecorys, which wascommissioned by the trade unions ABVAKABO FNV, BVPP and CNV Publieke Zaak, concluded thatfar-reaching cost reductions, including the loss of jobs, are essential if the company is to remainviable. But it suggested lower savings levels than those proposed by TNT might be sufficient.
Union leaders said they now accepted that staff would have to choose through a referendumbetween securing their jobs by agreeing to pay cuts, or maintaining pay levels but at the cost ofheavy redundancies. But they said that only 3,500 job losses might be necessary in order to savesome €75 million a year.
Earlier this year postal workers voted down new collective labour agreements (CLAs) betweenthe unions and TNT Post which would have seen wage cuts of up to 15% in exchange for job securityfor the next three years. The agreements would have saved €125 million a year out of overall annualsavings of €395 million.
TNT Post then warned it might have to make up to 11,000 out of 23,000 full-time staffredundant if no cost saving plan could be agreed with employees. In a subsequent employee survey,over 70% of the 7,863 respondents said they were prepared to forfeit conditions of employment inreturn for increased job security.
In response to the Ecorys report, TNT said this confirmed a 2007 study by the BostonConsulting Group (BCG) that the cost-saving plans were necessary and realistic, and described thereport as a basis for further discussion. But TNT rejected the Ecorys conclusion that lower savingscould be sufficient to keep the company healthy and reiterated the need for savings at thepreviously announced levels.
Gérard Aben, Director HR at TNT Post, commented: “Since the unions’ last study two years ago,TNT Post’s volumes have dropped by 8% and, since 2000, TNT Post has been faced with a cumulativevolume loss, currently totalling 25%. The problem has therefore continued to grow, making it evenmore essential to take action on costs.”
TNT said it therefore believed that the previously announced saving targets remainedessential if the company is to remain well positioned in the long term. TNT said it hopes to resumediscussions with the unions as soon as possible with the aim of avoiding as many compulsoryredundancies as possible.
