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UPDATE 3-TNT complains to EU over German minimum wage

Thu Mar 27, 2008 12:08pm EDT
 
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(Adds Dutch econ ministry spox)

AMSTERDAM, March 27 (Reuters) - Dutch mail company TNT NV (TNT.AS: Quote, Profile, Research, Stock Buzz) has filed a complaint with the European Commission over Germany's introduction of a minimum wage for all postal carriers operating in the country, saying it breaks EU rules.

TNT, which is looking to exploit growth opportunities in Germany -- one of Europe's biggest postal markets -- said the German government's decision to declare the minimum wage generally binding violates the European treaty on competition.

It added that while claiming social reasons for a minimum wage of 9.80 euros ($15.47) per hour, the government actually sought to raise the costs of rivals to Deutsche Post (DPWGn.DE: Quote, Profile, Research, Stock Buzz), hinder competition and shield the German operator from market liberalisation.

EU Commission spokesman Oliver Drewes said the Commission would carefully study the complaints and decide whether further action was necessary.

In a letter to the German government dated March 14 and seen by Reuters, EU Internal Markets Commissioner Charlie McCreevy noted the potential barriers to a free postal market in Germany.

"It has been brought to my attention that the introduction of unsuitably high minimum wages and the retention of different sales tax rates for postal carriers could hinder competition in the German market," McCreevy wrote.

"Such measures could limit competition and prevent users from feeling the benefits of an open market. Please share with us how you intend to institute fair competition in the German market under these conditions," he added.

  Continued...

 

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