UPDATE 2-TNT keeps monopoly, govt to hold workplace talks
* Dutch govt to discuss workplace conditions with sector
* Govt welcomes 'favourable steps' in Germany
* TNT shares reverse losses, close up 3.2 pct
(Adds TNT's reaction, details, updates shares)
AMSTERDAM, Nov 28 (Reuters) - TNT (TNT.AS) will hold on to its partial monopoly in the Dutch postal market after the government postponed a decision on Friday to open up the sector until after more talks on workplace conditions with competitors.
Frank Heemskerk, Economic Affairs State Secretary, welcomed a wage agreement signed earlier this month with TNT's main competitors, but said talks must still be held with the postal companies and unions to ensure adequate labour conditions once the market is fully liberalised.
He added, in a letter to Parliament, that the government can take "facilitating" measures to help support the sector's workplace conditions once the market is liberalised.
TNT has a monopoly for letters up to 50 grams in the Netherlands, estimated to be worth about 1 billion euros ($1.3 billion) in 2007, and competes with Sandd and Deutsche Post (DPWGn.DE) unit Selekt Mail for other items.
TNT shares reversed losses after a ministry spokesman confirmed the secretary's decision and closed up 3.2 percent at 16.50 euros, outperforming a 0.28 percent fall in the Amsterdam AEX index .AEX.
TNT said it welcomed the opportunity to discuss labour conditions, but added that it is still unable to compete on even terms in the United Kingdom and Germany, where TNT is still embroiled in a legal battle regarding the minimum wage.
PRECONDITIONS
The Dutch government has always had two pre-conditions on any decision to liberalise its domestic market, namely that labour conditions are adequate and that there is no impediment to competition in neighbouring Germany.
It had previously postponed a decision on liberalisation in May, going against the wishes of Parliament which had urged the government to open the market from January 2009, and Heemskerk did not give a date on Friday when the market might be opened.
Under European Union regulations, the market must be fully liberalised by the start of 2011.
Heemskerk, however, welcomed "favourable developments" in Germany, referring to a decision from the German government last month to end a tax advantage that Germany's biggest mail delivery company Deutsche Post enjoys against competitors.
Earlier this month TNT's main competitors in the Dutch market Sandd and Deutsche Post closed a wage agreement with unions.
But TNT rejected the deal as it was still too soft and offered an insufficient basis for solid terms and conditions of employment, the company said. (Editing by Mike Nesbit and Simon Jessop)
