News

A Dutch Court ruling means that postal delivery companies, Sandd and Selekt Mail (DHL) can continue to avoid collective contracts and can keep paying "piece" rates. The companies won their case where they argued that they should not be forced to employ permanent staff.



Judges in the Hague ruled that the Economics Ministry cannot force them to employ delivery workers instead of paying them for every item of post they deliver.



The deal to make Sandd and Selekt compete on more equal terms with TNT (the main Netherlands postal company) was one of the main conditions that the Dutch Government attached to the complete liberalisation of the postal market.



Under the deal, Sandd and Selekt Mail are supposed to employ under a collective contract, at least 10% of their delivery workers by April 2010 and 80% by 2012. The Dutch unions along with TNT have argued that by paying workers piece rates, and not paying pensions, sick pay or holiday pay, that Sandd and Selekt are able to undercut TNT's charges and that they are social dumping.



A Ministry spokesperson, speaking about the Court decision, said the ruling is being studied carefully. Frank Heemskerk, junior economic affairs minister sad, "Paramount is that a 'race to the bottom' in terms of pay and conditions for postal delivery workers must be avoided."