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DHL “piece work” rate ruling endorses social dumping say unions

22/01/10

Unions in the Netherlands have argued that paying postal workers piece work rates constitutes social dumping; this in the wake of a recent Dutch court ruling stating that Sandd and Selekt Mail, owned by DHL, could continue to pay workers for every item of post they deliver.

The Dutch unions along with TNT, a key Sandd and Selekt competitor, have argued that paying workers by the piece and failing to award them pensions, sick pay or holiday pay, meant the company was able to undercut TNT's charges and was effectively carrying out social dumping. Sandd and Selekt Mail won their case in a court in The Hague where they argued that they should not be forced to employ permanent staff.

The court decision was made against a backdrop of the liberalisation of the postal sector. Among the main conditions attached by the Dutch government to opening up the postal market was that Sandd and Selekt Mail should compete on more equal terms with TNT. The ruling appears to flout this condition.

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