Germany: Verdi calls for the introduction of new minimum wage in the postal sector

Positive impact on employees.  The introduction, on January 1, 2008, of minimum wage in the postal sector, of €-9.8 an hour, negotiated by Verdi and the AGV Postdienste employers’ organization (dominated by the Deutsche Post AG), came after much controversy.  The new postal services’ employers’ organization (NBZ) warned that 20,000 to 60,000 jobs could be cut by the German post’s main rivals – Pin Mail AG and TNT, the Dutch company.  Carried out by Input Consulting for Verdi, the study on the “introduction of minimum wage in the post and its impact on wages, businesses, competition and employment” is presenting a very different evaluation.  First, only a part of the businesses concerned complied with the directive introducing minimum wage in the postal sector.  Many of them mentioned ongoing legal proceedings to avoid enforcing it (see our dispatch No. 081041).  However, in spite of its limited application, minimum wage had direct or indirect positive effects on the evolution of pay in the postal sector.  Thus, average hourly pay increased in all regions and sectors.  In 2008, mailmen saw their salary increase by 8.8% in average in western Germany and 11.8% in eastern Germany, compared with 2007.  Also, massive job destruction didn’t occur.  8,400 jobs were cut in 2008 by postal service providers, but “this is mostly due to PIN going bankrupt” explained Claus Zanker, author of the study.  He explained that the bankruptcy was caused by bad decisions made by the management and owners before sectoral minimum wage was enforced.  “Therefore, its bankruptcy can’t be attributed to minimum wage in the postal sector” Mr. Zanker insisted.