Tuesday, December 4, 2007

Minimum Wage Threatens Postal Market Liberalization

January 1, 2008 will be an important date in Germany's postal service history. On that date the last monopoly held by the former government-owned but now private Deutsche Post will disappear. Currently, Deutsch Post is the only company permitted to deliver letters under 50 grams in Germany. Several companies have been formed to participate in this €23 billion ($31.4 billion) a year market.

In an effort to improve its standing among blue-collar workers the Social Democratic Party (SPD) pushed through a minimum wage for postal workers to protect them from exploitation and to provide a level playing field for the existing and new mail deliverers.

The article Minimum Wage Threatens Postal Market Liberalization in the English edition of the German news magazine Spiegel Online informs about the reactions of the new companies, the SPD and the European Union to the introduction of the minimum wage.

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