Deutsche Post and ver.di reach an agreement for future growth and employment

Changes to the collective company agreement enable the transfer of 13,000 DHL Delivery GmbH employees to Deutsche Post AG
The new wage structure is a further step towards long-term competitiveness
Redundancy protection for pay scale staff extended by an additional three years to December 31, 2022

At the end of their recent round of collective bargaining, Deutsche Post DHL Group and German labor union ver.di agreed to make a forward-looking change to Deutsche Post AG's collective company agreement. "Against the background of the ongoing restructuring of the German mail and parcel business, we have reached an important milestone which means security for employees and offers long-term opportunities for the company. This agreement is a further step towards competitive wage structures in the mail and parcel market, building a foundation for sustainable business success. We are also consciously distancing ourselves from low-wage competition in the sector," explains Frank Appel, CEO of Deutsche Post DHL Group.

The agreement establishes a uniform collective company agreement allowing the company to consolidate its position as the best employer in the sector. At the heart of the agreement is an amendment which builds on the existing collective company agreement, and will enable the company to continue moving towards competitive wages for all new employees while allowing regional differences to be taken into account. The new arrangements also allow the 13,000 DHL Delivery GmbH employees covered by the regional collective agreements for freight forwarding and logistics to be transferred to Deutsche Post AG's collective company agreement on July 1, 2019.

"As we restructure our mail and parcel business in Germany, planning certainty is important not just for us as a company, but also for our employees - who are, after all, our most important asset. The agreement provides this certainty. Taken as a whole, the agreements reached enable us to boost our attractiveness as an employer while achieving a financially sustainable solution for the company," says Thomas Ogilvie, Board Member for HR and Labor Director, about the agreement.

Both sides agreed to extend the company's outsourcing moratorium on mail and combined mail and parcel delivery services, which was due to expire on March 31, 2019, to December 31, 2020.

Redundancy protection, which was due to expire at the end of 2019 under the old arrangements, was also extended to 31 December, 2022.