TNT makes raise-for-layoffs deal with Dutch postal unions

THE TNT Group has reached an agreement with Dutch postal unions, whereby TNT Post staff will get a 0.7 per cent pay increase in return for accepting layoffs, reports the UK's Transport Intelligence.

The deal, known as the 'Collective Labour Agreement,' comes amid moves by TNT Post to cut staff numbers as the company has been suffering from declining volumes.

The report said TNT Post will use this agreement to achieve annual savings of EUR395 million (US$551.2 million) from 2015 onwards, "something which TNT Group says is vital for the continued viability of its TNT Post business," it said.

Rival Deutsche Post is now appealing to the German federal government to reimpose the minimum wage to block low-cost TNT into the market. TNT, which plans a low cost network to rival that of Deutsche Post, saw Germany's minimum wage in Germany as a major barrier to entry said the UK's Transport Intelligence.

(Source: www.schednet.com)