Use the following instructions at your own risk.

  1. Liberalize the postal market within your country. This enables private competitors to move in and cherry pick high profit areas. The national postal operator will carry on the expensive Universal Service Obligation. Wait a while before proceeding to step 2.
  2. Privatize the by now ailing postal system. If possible, turn it into a publicly traded company. Have proven private sector management take over and run the show.
  3. Start heavy competition with your neighboring countries, inside their countries. Expect the favor to be returned.
  4. Continue to make hefty profits. After all, we like to see satisfied shareholders. And multimillion Dollar bonuses are required to keep the new executives happy and working at their highest performance levels.
  5. Set up a second postal network besides your original postal network. Pay substantially lower wages to employees of the new postal network. This helps you to compete against those nasty privateers. You may also consider replacing your original postal delivery network with the new (and cheaper) network.
  6. Discard all full time employees and shift work to much cheaper part timers. The state will pick up the tab and bridge possible subsistence income gaps with social assistance.

Deutsche Post and TNT are currently executing step five and six.

Deutsche Post: Step 5

Deutsche Post management is setting the stage for a hard bargain in order to renegotiate labor contracts at the end of 2011. Deutsche Post has 80.000 carriers and 1000 apprentices. First Mail, a subsidiary of Deutsche Post with currently 700 employees, will be hiring 1000 apprentices by 2011. First Mail pays EUR 9.80 per hour vs Deutsche Post employees making around EUR 14 per hour. In the past Deutsche Post made the argument, that the operation of First Mail enables them to take away business from their competitors. These are known to pay wages as low as EUR 6 per hour.

The delivery area being serviced by quick growing First Mail is simultaneously serviced by Deutsche Post. Maintaining two delivery networks, which service the same geographical area does not make a lot of sense, but is contractually required as of right now. End of 2011 this could change. It is expected that First Mail will expand its geographical delivery area. And in the long run, Deutsche Post might end up shifting delivery entirely to low wage First Mail.

Deutsche Post will use First Mail as a bargaining chip for future labor negotiations. Head of mail division, Jürgen Gerdes, allegedly already threatened to shift carrier operations to First Mail.

TNT: Step 6

Quote from Wall Street Journal:

AMSTERDAM (Dow Jones)–Dutch postal and express company TNT NV (TNT.AE) will fire all of its full-time postal workers by 2012, a TNT spokesman said on Saturday

“We will lay off all employees that sort and deliver the mail that work more than 25 hours a week, while all mail collectors that work more than 15 hours a week will also lose their jobs, all together, the total number will run into thousands of employees,” TNT spokesman Ernst Moeksis said to Dow Jones Newswires, confirming earlier media reports.

Mail volume at TNT’s postal division has suffered from the liberalization of the Dutch postal market as well as from a shift from traditional mail to digital messaging.

The spokesman said the layoffs form part of TNT’s plans to save EUR595 million at its postal division by 2017.

Related article:
Deutsche Post Mail Division leaves no stone unturned in pursuit of savings

Other Sources:

Financial Times Deutschland