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Deutsche Post to pay new DHL hires less than old ones
DEUTSCHE Post is expanding its DHL parcel business in Germany, but new workers will be paid less than others doing the same job.
"Parcel delivery is not sustainable under existing wage agreements, the competitive disadvantage is not viable," management board member Juergen Gerdes told Reuters.
Deutsche Post said personnel costs at its parcel delivery business were about twice as high as those of competitors.
New jobs will pay wages in logistics sector, rather than Deutsche Post's more generous in-house agreement, putting the company on collision course with unions. Mr Gerdes said talks with union Verdi on "market-adjusted" wages have come to an impasse.
The company plans to create 10,000 new jobs at the parcel business by 2020, a figure which could rise to around 20,000 by 2025, it said.
Deutsche Post, like other official post offices in Europe, have experienced letter carrying decline while deliveries of parcels are rising thanks to online retailing serviced by lower wage workers of UPS, TNT and UK Mail with online retailer Amazon.com making its own deliveries.
"Parcel delivery is not sustainable under existing wage agreements, the competitive disadvantage is not viable," management board member Juergen Gerdes told Reuters.
Deutsche Post said personnel costs at its parcel delivery business were about twice as high as those of competitors.
New jobs will pay wages in logistics sector, rather than Deutsche Post's more generous in-house agreement, putting the company on collision course with unions. Mr Gerdes said talks with union Verdi on "market-adjusted" wages have come to an impasse.
The company plans to create 10,000 new jobs at the parcel business by 2020, a figure which could rise to around 20,000 by 2025, it said.
Deutsche Post, like other official post offices in Europe, have experienced letter carrying decline while deliveries of parcels are rising thanks to online retailing serviced by lower wage workers of UPS, TNT and UK Mail with online retailer Amazon.com making its own deliveries.
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