Postal Act reform - criticism from Verdi, praise from the SPD

Postal Act Overhaul: Verdi's Critique, SPD's Praises

The proposed modification of the antiquated Postal Act has sparked debate, with the Verdi trade union firing criticism while the SPD parliamentary group offers its endorsement. According to Sebastian Roloff, SPD representative, delivered letters will still be mandated across all six workdays a week, with Mondays being preserved, he told the German Press Agency on Sunday. As the rapporteur for the Postal Act for the SPD parliamentary group, Roloff will play a key role in upcoming parliamentary deliberations. The Federal Ministry of Economics unveiled its reform blueprint on Friday.

Over a decade has passed since the regulations were last revised—a period marked by significant shifts in demand. Parcel shipments, once secondary, have grown exponentially, fueled by online commerce, while letters have seen a precipitous decline in relevance. Back then, letters were extensively utilized for communications; now, people rely more on emails or chat platforms.

Post Office to Acquire More Time for Letters

This evolving landscape is acknowledged in the reform proposal, which eases time pressures on the postal service. Under current rules, at least 80% of mails posted today need to be received by the next working day; this obligation will now only be applicable on the third working day after dispatch, given that 95% will have to reach their recipients by then. This relaxation will enable Deutsche Post to cut costs and discontinue night flights, which remain in operation for letter transfers. Roloff, the SPD spokesperson, views the shift in delivery schedules positively, stating that it will "help reduce the logistics company's CO2 emissions—a climate-friendly move."

Verdi, however, voices concerns. The union warns of substantial job losses due to the relaxed delivery timeframe, citing a potential "massive threat" to positions covered by collective agreements. The proposed modifications to working hours are vigorously rejected, asserts Verdi Vice President Andrea Kocsis. She emphasizes the urgent necessity for federal authorities and parliament to revise the legislation.

Roloff, conversely, is skeptical about job losses associated with the modified duration requirements. Although he acknowledges some reservations concerning the proposal, he ultimately views the Federal Ministry's work as commendable, highlighting the branch network obligation as a prime example. Maintaining at least one postal office in towns with 2,000 residents will fortify local communities and contribute to the development of rural areas, asserts Roloff.

Tightening Regulations on Parcel Companies

The reform proposal includes measures to curtail the activities of parcel firms with regard to subcontractors. The ministry aims to assign culpability for offenses within the entire subcontractor chain, such as minimum wage violations. Previously, companies had escaped liability if a subcontractor assigned the order to another subcontractor. "This has led to abuse in numerous workplaces, and it is a good thing that this is set to change," remarks Roloff.

While this development is welcome, Roloff believes that outright eliminating the use of subcontractors in the letter and parcel sector would have been advantageous. Seasonal peaks, such as the holiday season, could potentially be navigated through temporary regular employment positions, which would not require subcontractors.

In conclusion, the Postal Act reform aims to alleviate time pressures on the postal service, requiring 95% of letters to be delivered within three working days instead of the previous 80% by the next working day. This adjustment will enable Deutsche Post to decrease costs and eliminate nocturnal flights for letter transportation.

The Verdi trade union has raised concerns over potential job losses as a consequence of the relaxed delivery timetable, while SPD spokesperson Roloff is hesitant about this supposition. Amid these debates, both parties continue to voice their distinct perspectives on labor rights, cost reduction, and the overall impact of Postal Act reforms.

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The arguments for and against the Postal Act reform proposal affecting delivery times and its potential impact on jobs in the postal sector, as represented by the SPD and Verdi union in Germany, can be summarized as follows:

Arguments For the Reform Proposal

1. Cost Savings and Efficiency:
2. Ofcom Proposal: The proposed change to deliver Second Class letters on alternate weekdays, not on Saturdays, is expected to realize annual net cost savings of between £250m and £425m for Royal Mail. This could enable the company to improve reliability and redirect existing resources to growth areas such as parcels[1][3].
3. Adaptation to Changing Usage Patterns:
4. Ofcom: The volume of letters delivered has significantly decreased over the past two decades, from 20 billion to 6.6 billion per year. This decline has driven up the average cost of delivering a letter, making it necessary to adapt the service to reflect current usage patterns[1].
5. Quality of Service Adjustments:
6. Ofcom: The proposed changes include reducing the primary targets for First Class mail from 93% to 90% delivered next-day and for Second Class mail from 98.5% to 95% delivered within three days. These targets remain high by international standards but are more realistic given the current service levels[1][4].
7. Consumer Needs Assessment:
8. Ofcom: The proposed changes have been assessed to ensure they continue to meet the needs of postal users. Only 4% of users think they would be very significantly impacted by the proposed changes, indicating a relatively low impact on consumers[1].

Arguments Against the Reform Proposal

1. Impact on Jobs and Workload:
2. Verdi Union: The union has expressed concerns about the potential impact on jobs and workload. With declining volumes, postal workers are walking more routes but delivering fewer letters, which can lead to increased physical strain and higher costs. Verdi has called for significant wage increases and improved working conditions to address these issues[3].
3. Reduced Service Quality:
4. Verdi Union: The union is critical of the proposed reduction in service quality targets. They argue that maintaining higher standards is crucial for ensuring reliable and efficient service, particularly in a sector where public trust is essential[3].
5. Lack of Consultation:
6. Verdi Union: The union has criticized the lack of consultation with workers and stakeholders in the reform process. They argue that any changes should be made in collaboration with those directly affected to ensure that the reforms are fair and sustainable[3].
7. Alternative Solutions:
8. Verdi Union: The union suggests that instead of reducing service targets, the focus should be on improving efficiency and reducing costs through other means, such as investing in technology and streamlining operations. This approach could help maintain service quality while addressing financial sustainability[3].

SPD's Position

The SPD (Social Democratic Party) in Germany has not explicitly stated its position on the UK's postal reform proposal. However, the party's general stance on labor rights and public services suggests that they might align with Verdi's concerns about job security and service quality. The SPD has historically advocated for strong labor protections and public services that meet community needs, which could lead them to support more comprehensive reforms that prioritize worker welfare and service reliability[2].