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Unions fear job losses due to FedEx takeover of TNT
Unions representing employees of courier firm FedEx have warned that a takeover of rival TNT could cost up to 400 jobs at the FedEx European headquarters in Brussels. “As one competitor is taking over another, and they both do the same thing, they will be looking for synergies,” said Hans Elsen of the union ACV. “In all likelihood, depots will be merged and couriers will cover both routes.”
An even greater concern to unions, however, is FedEx’s decision to move its headquarters to Amsterdam, where TNT is based. “It’s scandalous that we had to learn that from a press release,” Elsen said. “I assume that local management had only just found out themselves and had to get something out quickly.”
Unions say they were not consulted, although the so-called Renault law makes this mandatory. FedEx is offering €4.4 billion for the loss-making TNT, and already has the approval of the largest shareholder, PostNL which holds 14.7% of the shares.
TNT, faced with competition from Germany’s DHL as well as the American UPS, has piled up €673 million in debt over the last four years. TNT has a network of 550 depots built around 19 hubs.
FedEx has declined to comment on the union’s allegations but promised it would try to avoid “substantial job losses”. The TNT sorting centre in Liège, which employs 1,500 staff, will be maintained, the company said.
At the same time, FedEx will be looking for a buyer for TNT Aviation, also based in Liège. FedEx is a US company and is not by law allowed to own a European airline.
photo courtesy Aradecki/Wikimedia
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FedEx TNT Merger Will Reduce Competition and Feeds into FedEx UPS Monopoly in the U.S
Merger Will Limit Choice and Result in Rate Hikes for Consumers
FedEx and TNT announced an agreement to merge and were fast to highlight that the merger will be great for business, economy and job growth here in the U.S and overseas.
The joined press release revealed that FedEx will be acquiring TNT and like any other merger they made multiple promises from service improvements to job growth. But you have to look beyond the empty promises and review the consequences that this merger will have here in the U.S and abroad:
Limited Competition:
Consumers in the U.S will have one less choice when it comes to shipping their packages. This limited choice will feed into the current UPS and FedEx monopoly that often translate to higher prices and full control of the marketplace. This merger will eliminate the choice of TNT as a carrier, they will be absorbed by the giant money machine of FedEx that is known to raise their rates every year and squeeze customers. TNT in the other hand is a great choice, because their rates are often 30 to 50% cheaper that FedEx rates, they are often the under-dog but a great choice for small businesses and consumers with low budgets.
Job Loss:
Like any other merger, this acquisition will sooner or later translate into lay-offs of TNT workers, hub consolidations and loss of jobs. To maintain profitability, FedEx will not allow duplication of Routes, Hubs or Management Staff. They will consolidate teams, hubs and fleet in search for maximum profits. TNT staff will more likely be reduced and downsized in order to minimize cost.
Rate Hikes:
When competition is limited, consumers will be at the mercy of the carriers and pay whatever the asking price is. It is: supply and Demand economy. TNT is a growing competitor that is giving small businesses and consumers a choice beside UPS and FedEx. This merger will eliminate this choice and give FedEx and UPS full control of shipping rates. This will often translate in rate hikes and price fixing.
Conclusion:
We ask that you look beyond the glamorous Press Releases and do your due diligence on behalf of your country, constituents and your moral conscience. We know that you may find it hard to stand up to the giant FedEx Lobbying power but I remind you that you took an oath to your office. Ask the tough questions, do what the European Union did to block the previous TNT merger with UPS: They saw the real consequences on their economy in job losses, price fixing and limited competition. Simply put this merger is not good for us here in the US; it should be scrutinized and stopped.
Sign our Petition: https://www.change.org/p/fedex-new-york-state-senate-u-s-senate-stop-fed...