Belgian Post gears itself for liberalisation process

In the context of extensive restructuring of Belgian Post’s internal organisation ahead of the future liberalisation of the market, the postal operator has decided to replace 40% of its traditional postal workers operating mail rounds with ‘delivery workers’. The latter will work part time and only be in charge of the delivery of standard, light mail. Belgian Post expects that these changes will reduce costs by several million euro without leading to any direct dismissals.

In anticipation of the future liberalisation of the postal sector in 2011, Belgian Post (La Poste/De Post) has launched a significant reorganisation plan for its mail delivery network.

For a number of years, Belgian Post has been adapting its internal structures in preparation for the future liberalisation of the European postal services market. For example, its mail and retail branches have been separated, numerous post offices have been closed and significant job cuts have been made.

Reorganisation of mail delivery department

In the autumn of 2007, workers at Belgian Post were informed about a new, extensive reorganisation plan for the company’s ‘mail and parcels operations’ department. Accordingly, from 2009, some 486 delivery offices will be transformed into 150 ‘operation platforms’, which will be responsible for preparing mail delivery activities. Some 40% of the mail delivery rounds will, in turn, become the responsibility of delivery persons working on a part-time basis – between two and five hours a day – who will deliver simple and light mail. At the same time, traditional postal workers will maintain their usual rounds in addition to taking on new duties, such as mail sorting or the delivery of special mail. This would enable a significant reduction in the number of traditional postal workers, through the introduction of more flexible types of activity.

Management at Belgian Post assured the employees that the transition would not result in any direct dismissals and that the job losses would be largely realised through the retirement of staff. The delivery function would initially be proposed to employees at the end of their career or to women who would like more free time to take care of their children.

According to management, the decision to accept a part-time job must be a voluntary one on the worker’s part. However, some people are sceptical about this new job type, which will be organised on a part-time, more flexible basis and in return for a smaller wage.

Trade unions demand regulation of postal market

The Confederation of Christian Trade Unions (Confédération des Syndicats Chrétiens/Algemeen Christelijk Vakverbond, CSC/ACV), the Free Trade Union of Civil Servants (Syndicat libre de la Fonction Publique/Vrij Syndicaat voor het Openbaar Ambtenaars, SLFP/VSOA) and the General Confederation of Public Services (Centrale Générale des Services Publics/De Algemene Centrale der Openbare Diensten, CGSP/ACOD) have expressed their concerns about the future of workers in the postal services sector, as well as questioning political leaders about the global future of postal services in a liberalised context. In particular, they have raised questions over how to protect workers who are being pressurised to accept poorer working conditions and in relation to the development of a universal postal service and its funding.

The trade unions have requested that the government provides clear and concrete answers about the future of the postal services sector and insist that competition rules should be the same for all actors present in the sector.

Merger sparks further concerns

These concerns were reiterated when an alliance between Danish Post (Post Danmark) and Swedish Post (Posten AB) was announced. Danish Post and a British pension fund, CVC Capital Partners (CVC), actually hold 49% of Belgian Post’s shares. To date, the Belgian government still retains 51% of the shareholding.

A number of concerns have been raised about a possible transfer of the Danish-Swedish alliance’s shares to another European integrator which could be particularly interested in absorbing Belgian Post, as the latter would be too small to remain independent in the open European market. While the Danish Post holding did not result in any significant restructuring measures, the merger of the two operators or the company’s acquisition by another operator could lead to substantial job cuts, according to some commentators. However, the Minister for Public Companies, Inge Vervotte, insisted that this alliance would not affect the balance of power among the shareholders.

Commentary

The future of Belgium’s postal services remains uncertain, although it is obvious that the extensive reorganisation plan of Belgian Post aims to adapt the national operator to the emerging market. An important priority for the trade unions seems to involve adapting themselves to the future European open market and displacing their demands from a national to a European level; this may entail collaborating with their European counterparts to establish a workers’ network which is capable of acting within a larger context.

Emmanuelle Perin, Institute for Labour Studies (IST), Université catholique de Louvain (UCL)