TNT rejects union demands, faces strike

[TrueBlueTerrier]

http://www.lse.co.uk/FinanceNews.asp?Ar ... ces_strike" onclick="window.open(this.href);return false;

THE HAGUE, Nov 8 (Reuters) - Dutch mail and express group TNT said on Monday it could not meet 'irresponsible' union demands, increasing the risk of strikes that may hamper restructuring of its mail unit ahead of a possible sale.

Dutch trade unions had said they would go ahead with a threatened 24-hour strike on Nov. 16 if TNT failed to meet an ultimatum, which expired on Monday, to reconsider the number of forced redundancies in the mail unit.

'After Nov. 16 I hope and expect we can engage in creative consultation with the unions, but we are open to talks at all times,' Harry Koorstra, managing director of TNT's mail division, told a press conference after the ultimatum expired.

TNT called the unions' demands irresponsible and unfeasible, warning that industrial action would only exacerbate the loss of business to its competitors and accelerate the decline in postal volumes.

TNT shares were up 0.63 percent to 18.42 euros at 1238 GMT, outperforming a flat Amsterdam bluechip index.

The rise of electronic communications has forced mail operators across Europe to streamline their operations. Managers at Britain's Royal Mail Group are considering strikes for the first time since 1979 over job losses.

The restructuring of TNT's mail unit is key to the group's profitability. Last week, TNT's third-quarter earnings missed expectations after operating margins declined in mail, which is already grappling with ever-decreasing volumes.

Trade unions have threatened to strike over redundancies as TNT seeks to cut 11,000 jobs. The company said in the summer that involuntary redundancies could reach 4,500 but has since offered to reduce that number by 1,400.

TNT, which is separating its express and mail units and preparing the latter for a possible sale, is expected to update investors on

the split at its analysts day on Dec. 2 and there are fears strikes could delay or even hamper the process.

'I understand the concerns over delays but let's wait and see what happens. We have a good track record of resolving such conflicts. We have also said that the internal separation will take place on Jan. 1,' Koorstra said.

TNT is reorganizing its mail business to offset volume declines. Volumes are falling as a result of the liberalization of the Dutch postal market in 2009. The pressure from competition comes on top of a decline in mail volumes as a result of ongoing digitalization.

[POSTMAN]

warning that industrial action would only exacerbate the loss of business to its competitors and accelerate the decline in postal volumes.

Ere,is it one spokesperson doing the rounds or summin?

[DGP1]

warning that industrial action would only exacerbate the loss of business to its competitors and accelerate the decline in postal volumes.

Ere,is it one spokesperson doing the rounds or summin?

Stepford Spokesmen