Universal service providers have reached new deals with labour organisations on employment conditions, despite the difficulties generated by rapidly changing market conditions. Cullen International’s latest benchmark on labour-related regulation shows that, since March 2023, new deals between postal universal service providers (USPs) and labour organisations were agreed in four of the 17 European countries studied.

In Germany and the UK, collective labour agreements were reached only after periods of strike action by postal workers. Deutsche Post and ver.di agreed a deal in March 2023 that will cover 160,000 employees until the end of 2024. Royal Mail and the CWU reached agreement in April 2023 on terms covering pay, benefits, and job security.

In May 2023, Irish USP An Post and the CWU agreed on labour conditions for a business transformation programme. Austrian Post and GPF agreed in May 2023 to raise staff salaries in an annual agreement on salary conditions.

Negotiations between operators and trade unions are ongoing in several other countries.

The postal sector requires a large number of workers to operate, so that labour costs make up a large proportion of total operating costs for postal operators. In the EU, the postal sector accounts for almost 1% of total employment, with USPs often being among the largest employers in their country. The regulation of postal working conditions, by law or by labour agreements, therefore have a major impact on USPs’ profitability and governments’ policy goals.

Cullen International’s postal regulatory intelligence service includes coverage of the latest developments in postal labour relations, including the way that the gig economy affects postal regulation.

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