The effects of an employment contract fund on the postal market

Mid-January 2011, Mr Vreeman gave his advice on possibilities to resolve the impasse in the postal market. The postal market is likely to get stuck now the new postal companies, due to the price war, were unable to realize sufficient transitions of agreements of assignment (OVO) into employment contracts. If the new postal companies fails to make new agreements with the unions, an Order in Council threatens to come into force that forces postal companies to work only with employment contracts. Such a requirement would mean that the new postal companies go bankrupt and that the postal market is back to square one: a TNT monopoly.

Vreeman advised to set up an employment contract fund to resolve the impasse. However, the advise does not indicate where the money will come from. Vreeman expects up front funding from the companies themselves. But if the companies cannot pay the rapid transition to employment contracts, how can they pay similar amounts to the fund in advance?

How can the employment contract fund recommended by Ruud Vreeman be set up functionally? This report provides an elaboration of the employment contract fund with the demands of the unions and the relevant laws and regulations taking into account.

The employment contract fund in accordance with the advice Vreeman encounters competition concerns. A solution that is compatible with competition law and satisfies the conditions of the unions, is the introduction of a market-wide levy (excise) by the government on bulk mail.