Deutsche Post AG secured a wage deal with the Verdi labor union covering 160,000 workers, raising salaries even as it expects profits to fall.
(Bloomberg) — Deutsche Post AG secured a wage deal with the Verdi labor union covering 160,000 workers, raising salaries even as it expects profits to fall.
The agreement will cover 24 months, the company said in a statement on Saturday. Verdi, whose members have previously gone on strike in a push to preserve their income against inflation that topped 8% last year in Germany, also endorsed the result.
“In the interest of our employees, but also of our customers, we went beyond our financial pain threshold,” said Deutsche Post board member Thomas Ogilvie. “It’s important that we were able to avoid longer strikes.”
Workers will receive initial tax free payments and a 340-euro ($362) monthly salary increase from April next year. The average pay rise across all income groups from April 2024 is 11.5%, according to Deutsche Post, with less well-paid staff seeing the biggest benefits.
The company said Thursday it expects 2023 earnings to decline amid slower growth in Europe’s largest economy. The freight boom that accompanied the coronavirus pandemic is also receding, with shipping rates retreating from record highs.
The result means “our most important goal of getting an inflation adjustment, especially for the lower-income groups, will be achieved,” said Verdi official Andrea Kocsis. The labor union had sought a 15% pay rise for postal workers.
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