Global Study Reveals Post Liberalisation Disasters in Europe

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Postal market liberalisation routinely leads to unemployment, attacks on working conditions and poorer service for customers, says a study released today by UNI Global Union.

UNI is urging the European Union to immediately put a moratorium on the implementation of the 3rd postal directive and start a proper debate on the issue. Competition is not delivering for customers; it is only creating social dumping and unemployment.

The global study, carried out in 13 countries shows that full liberalisation of the postal market does not work.

"What we have been seeing in Germany and the Netherlands recently-- postal companies demanding lower wages and announcing big job cuts-- is the inevitable disastrous conclusion of a failed liberalisation policy, said Neil Anderson, Head of UNI Post & Logistics, "Our research shows the economic crisis is a catalyst for liberalisation and for social dumping that companies like TNT and Deutsche Post are proposing."

The study examines the effects of liberalisation on workers and the union response.

UNI found that the economic theory backing up liberalisation doesn't hold up in the postal sector. There is little competition in the liberalised postal markets, with new entrants obtaining from 0.1% to 10% of market share. Furthermore, there are very few competitors to the incumbent, in most cases between one and four.

The study shows the tremendous job losses caused by liberalisation, deterioration of working conditions in competing postal operators, increasing precarious working conditions through the increase in atypical work, cuts in wages and wage dumping.

You can find the full study at: http://www.uniglobalunion.org/Apps/ipor ... 122_jes7En" onclick="window.open(this.href);return false;

UNI Post & Logistics is the global union for the postal and logistics industry, representing 157 unions and 2.5 million workers worldwide.

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UNI Study reveals post liberalisation disasters in Europe and globally

Postal market liberalisation routinely leads to unemployment, attacks on working conditions and poorer service for customers, says a study released today by UNI Global Union.


As UNI Post & Logistics Global Union observed wages and working conditions of postal workers deteriorating in liberalised postal market, UNI wanted to understand why and how this happened. It was thus decided to undertake a global study on the liberalisation of postal services and its impact on workers. The objective was also to assist our member unions in preventing the detrimental impact on of liberalisation on employees of the postal sector.
The research is based on case studies from 13 countries around the world, some of which have experienced liberalisation for many years, others still working on trying to avoid it. We have been looking into the driving forces of liberalisation as well as the liberalisation process itself and what its effects were in terms of competition but most importantly on workers themselves. In another part of this study we have also looked into how unions have dealt with this issue.

Our main findings are that the economic theory backing up liberalisation cannot be proven in the postal sector. Indeed there is only very little competition in the postal liberalised markets, with new entrants detaining from 0.1% to around 10% of market shares. Furthermore, there are very few main competitors to the incumbent, in most cases between one and four.
When it comes to the employment aspect, we have noticed tremendous job losses caused by the liberalisation process (privatisation, restructuration, automation), a deterioration of working conditions in competing postal operators, increasing precarious working conditions through the increase in atypical forms of work, cuts in wages and wage dumping.

So here is what postal liberalisation has delivered.

UNI P&L Research on Liberalisation - EN.pdf