BERLIN (Reuters) - Deutsche Post's (DE:DPWGn) plan to set up new parcel divisions to lower costs is "non-negotiable", the chief executive of the postal and logistics group said in a newspaper interview.
Trade union Verdi has held a series of strikes since April, disrupting deliveries in Germany, in response to the company's plans to hire 10,000 people at new parcel units at lower pay than the standard collective labour agreement at Deutsche Post .
Talks between the two sides are due to start again on July 3.
"The fact that there are these new companies is non-negotiable," Frank Appel was quoted as saying in an interview with regional daily Westdeutsche Allgemeine Zeitung, adding that the group had to have cost structures that would ensure it was able to compete in the future.
He said that 3,800 of 4,000 Deutsche Post staff on temporary contracts had jumped at the chance to join the new parcels units on a permanent contract, while a further 2,000 new hires had also joined.
He also said the group was sticking by its targets when asked if the strikes would lead to its profit aims being reduced.