TNT keeps cuts goal after union snubs pay deal

[TrueBlueTerrier]

http://www.guardian.co.uk/business/feedarticle/8469869" onclick="window.open(this.href);return false;

* Union rejects labour accord that included wage cuts
* Firm warns of thousands of redundancies if no agreement
* TNT still plans annual savings of 395 mln eur until 2015

AMSTERDAM, April 23 (Reuters) - Dutch mail company TNT NV stuck to its annual cost savings targets and raised the prospect of thousands of forced redundancies after postal union members rejected a draft labour accord that included wage cuts.

The firm said on Thursday it would maintain its target of 395 million euros ($514 million) in annual cost savings until the end of 2015, to compensate for declines in mail volume.

TNT warned the restructuring could entail the loss of 11,000 staff over a period of one to three years if there was no agreement with unions. But it was open to talks on other options for achieving the savings target.

"We hope (unions) come up with realistic alternatives to contribute to the savings," a TNT spokesman said.

TNT said last month it had reached an in-principle agreement with several unions in a deal that would save the company 125 million euros a year, but postal services staff have since voted against the deal.

Shares in TNT were down 3.3 percent at 13.5 euros by 1222 GMT, while the DJ Stoxx industrial goods and services index was up 0.1 percent.

The company plans the restructuring at its postal division, where it says volumes of mail handled are dropping faster than ever due to increased use of email and after it lost a partial mail monopoly in its domestic Dutch market on April 1.

TNT also lost a case in the European Court of Justice, which ruled on Thursday that the universal postal service provided by the Royal Mail in the UK, where the Dutch firm collects and sorts mail, should be exempt from VAT.

TNT had filed a court complaint disputing the validity of the exemption.

($1=.7678 Euro)

(Reporting by Catherine Hornby; editing by John Stonestreet)

[DGP1]

These are the experts that are supposed to be our saviours

[Stormproof]

Oh what a shame Get found out for tax evasion and then try to become VAT exempt and lose, the futures bright but it ain't orange

[k979aaa]

Savings of £353 million UK pounds well i bet that failed court action cost a fair few bob more or should i say job's!. It is a disgrace that these so called advisors and their willing accomplices TNT management should be so wasteful of their dwindling cash-pot if that is what you call expertise we the royalmail can do without their bad advice and so called expertise!. :mfo

[pinstripe]

Savings of £353 million UK pounds well i bet that failed court action cost a fair few bob more or should i say job's!. It is a disgrace that these so called advisors and their willing accomplices TNT management should be so wasteful of their dwindling cash-pot if that is what you call expertise we the royalmail can do without their bad advice and so called expertise!. :mfo

Too right...We've got :cfo and :mfo , I'm sure we could even call on the services of :lfo . We really don't need TNT's help to screw up our company.

Question; if TNT are so stuck for cash, how can they possibly afford another £300million or whatever to acquire a 'strategic' share in RM?

[stokes11eg]

Savings of £353 million UK pounds well i bet that failed court action cost a fair few bob more or should i say job's!. It is a disgrace that these so called advisors and their willing accomplices TNT management should be so wasteful of their dwindling cash-pot if that is what you call expertise we the royalmail can do without their bad advice and so called expertise!. :mfo

Too right...We've got :cfo and :mfo , I'm sure we could even call on the services of :lfo . We really don't need TNT's help to screw up our company.

Question; if TNT are so stuck for cash, how can they possibly afford another £300million or whatever to acquire a 'strategic' share in RM?[/ That's the rub----somewhere along the line. you will probably find R/M is bankrolling T.N.T--it's is not the first time a company has 'sold out'and further down the line, bought back in! Once all the dirty work of reducing staff numbers, mass redundencies etc have taken place.

[k979aaa]

Savings of £353 million UK pounds well i bet that failed court action cost a fair few bob more or should i say job's!. It is a disgrace that these so called advisors and their willing accomplices TNT management should be so wasteful of their dwindling cash-pot if that is what you call expertise we the royalmail can do without their bad advice and so called expertise!. :mfo

Too right...We've got :cfo and :mfo , I'm sure we could even call on the services of :lfo . We really don't need TNT's help to screw up our company.

Question; if TNT are so stuck for cash, how can they possibly afford another £300million or whatever to acquire a 'strategic' share in RM?[/ That's the rub----somewhere along the line. you will probably find R/M is bankrolling T.N.T--it's is not the first time a company has 'sold out'and further down the line, bought back in! Once all the dirty work of reducing staff numbers, mass redundencies etc have taken place.

Even if it is not done that way maybe all the banks that we as taxpayers have subsidized and bankrupt our nation will owe :mfo a favor for his (our generosity) we and i can but speculate but it is a fair guess two banks RBS or LLOYDS BANKING GROUP will put up the cash (OUR CASH)!. :mfo