Dutch postal workers are to consider a 3.5% pay cut in order to stave off huge job losses.

TNT Post, which this month announced that Group profits were down 10% for the same period last year, is also facing pressure from competitors Sandd and Selekt Mail in Holland.

In July this year, the company said it would be considering culling 11,000 employees to save around 395 million euros after union members refused to accept a 15% pay cut.

The new offer of between 2% and 3.5% pay cuts, achieved predominantly through a proposed reduction in Sunday pay, would see redundancies drop to under 1000 employees and is likely to be accepted by the unions.

Mark White, subeditor for Hellmail European Postal News said:

"The problem for all postal operators is that no one really knows how far this contraction in volume will go and how long it might last, particularly since the banking crisis.

"Deutsche Post DHL has been working on consolidation for some time but even a postal operator of this magnitude is not immune to the downturn in volume and increased competition. It is affecting everyone in the business." he said.

TNT said that its trading environment continued to be under pressure.

TNT CEO Peter Bakker said:

“In this quarter the trading environment has stabilised further – with some early signs of positive underlying developments. With Q3 being the low volume season, the EBIT of both our divisions is at a satisfactory level.

"The rate of decline of Express volumes has modestly improved. In particular, the average weight per consignment developed positively for the first time in a year, while price pressure remained. At the same time, our people continue to deliver on cost.

"Mail achieved a solid result helped by strong Master plan savings in the quarter. Discussions with our unions to find ways of achieving necessary cost savings are ongoing.

"TNT is optimally positioned to take advantage of a possible economic upturn but also needs to be prepared for continued harsh economic conditions and therefore remains focused on achieving its aggressive cost and cash control targets.”

© Hellmail.co.uk (09 November 2009)

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