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Why is this change necessary?

Why is this change necessary?

Posti is currently facing the greatest transformation in its history: consumer behavior has changed, digitalization is increasing, the volumes of paper mail have decreased at a growing rate and competition is becoming fiercer. The volume of Posti’s parcel delivery is growing; on the other hand, parcels and logistics already amount to over half of Posti’s net sales. Posti is looking for significant growth opportunities in parcels, eCommerce and logistics services.

Answers to the most frequently asked questions

There has been a public discussion regarding the internal reorganization of Posti’s Parcel & eCommerce. Incorrect or inaccurate information has been spread in the discussions. Below, we answer the most frequently asked questions.

Why must the collective agreement of parcel sorting be changed?

Our goal is to improve the flexibility of our operations. This allows us to provide our customers with more flexible services as well as preserve jobs and create new ones in the future. We will support our personnel through this change. We have decided on an arrangement that guarantees that the total salary of our sorting personnel will remain unchanged for over two years, i.e. until January 31, 2022. Starting from April 1, 2020, our direct employees will also have the opportunity to earn a salary higher than their current one through production bonuses.

Consumer behavior has changed significantly. eCommerce and parcel sorting is an extremely competitive market with many foreign players in addition to Finnish ones. In addition, eCommerce operators from Asia, Central Europe and North America have their own requirements and expect continually improving agility and flexibility from our operations.

How many employees will be affected by the change?

The change will affect the sorting operations of the Parcel & eCommerce business group, or approximately 700 people.

How will the salary of the personnel be impacted by the change?

We have decided on an arrangement that guarantees that the total salary of our parcel sorting personnel will remain unchanged until January 31, 2022. Starting from April 1, 2020, our direct employees will also have the opportunity to earn a salary higher than their current one through production bonuses.

How will the salary of the employees be determined starting from 2022?

Starting from February of 2022, part of the personnel’s salary will be based on a fixed salary table and part of it will be paid on an accrual basis. The employees will also have the opportunity to earn a salary higher than their current one through production bonuses. The accrual-based salary is determined by work quality and efficiency.

Will the change also affect traditional postal services?

Posti’s objective is to find a collective agreement solution during the collective agreement negotiations in the fall that corresponds to the company’s needs concerning competitive markets. The negotiations between the Finnish Post and Logistics Union PAU and Service Sector Employers PALTA will begin in early September and continue on September 26. The negotiations between PALTA and PAU concern approximately 10,000 employees, most of whom work in mail delivery.

The volumes of paper mail are decreasing at a record high rate and, with the liberalization of regulations in postal services, Posti now has 16 competitors in mail and publication delivery, with each of them following a different collective agreement than Posti.

Why has Posti previously changed the personnel’s terms of employment?

Posti is currently using 11 different collective agreements for various operations. Early-morning delivery, transport and warehouse operations have already switched to each sector’s generally used collective agreements, which are best suited for the work in question.

In early-morning delivery, competitiveness has also brought new customer contracts and work for Posti employees.