Press Release

TPG signs letter of intent with CTT Correios

Publish Date : 27 March 2001 at 08:23 CET - TNT Post Group NV (TPG) announced today the signing of a Letter of Intent with CTT Correios to explore a potential long term strategic alliance, which will mainly focus on domestic and international express delivery services within and from Portugal.

TPG and the unions representing its employees in the Netherlands (ABVAKABO FNV, BVPP, CFO/CNV and CMHF/vhp KPN & TPG) have reached agreement in principle on a new 13-month collective labour agreement. The agreement will run from 1 April 2001 to 1 May 2002. Salaries will be raised by 4% effective 1 April 2001 and by a further 0.35% on 1 January 2002. The profit-sharing bonus paid to employees over 2000 will be increased by 0.75% on a once-only basis.

The collective labour agreement will apply to more than 51,000 TPG employees who work in the Netherlands at PTT Post, TNT and TPG Head Office. The same increases form part of a separate collective labour agreement for approximately 13,000 Saturday delivery staff.

Other important arrangements agreed by TPG and the unions concern making costs more flexible and modernising the collective labour agreement to reflect TPG's increasingly competitive market environment.

TPG and the unions will work out details of a number of other arrangements over the coming months. They include more flexible deployment of labour, closer harmonisation of conditions of employment with the markets served by TPG's divisions, reduction of absenteeism through sickness, lowering of the number of employees declared medically unfit for work, examination of the income of postal delivery staff and improvement of the remuneration system through the inclusion of greater options.

All of the unions intend to recommend that their members accept the in-principle agreement.

Page publication date: 27 March 2001 at 08:23 CET