Inquiries and Responses - Revising the Postal Law could lead to delayed delivery of mail.
The revamp of the Postal Law is moving forward. Tomorrow afternoon, the Bundestag will vote in a plenary session, followed by the Bundesrat. Here's a breakdown of the legislative amendment and its effects on consumers.
What does the Postal Law cover?
After the privatization of Deutsche Bundespost in the '90s, the government set guidelines for citizens to receive mail and purchase stamps in the future. The federal government dictates that every large village needs a post office, mailboxes must be easily accessible, and letters must reach recipients rapidly - even on Mondays, even though only a handful of mail is sent on weekends and mailboxes are often empty at the beginning of the week. In addition, letters must be delivered six days a week - including on Mondays, even though only a small number of mail is sent on weekends and mailboxes are frequently emptier at the start of the week.
What's the issue?
These rules stem from a period when online shopping was still in its infancy and letters were a common form of communication. Since then, significant transformation has taken place: Individuals now prefer chats and emails over letters, and online shopping is becoming more popular than visiting physical stores. The amount of mail has been steadily decreasing for a long time, and the volume of packages is decreasing. The post office has been incurring steep costs due to its requirement to operate a mail network with fewer and fewer shipments. It must deliver mail to every corner of Germany, even to remote farms. The current demand hasn't been adjusted by the Postal Law, which is now considered outdated and needs to be rectified.
What's the most necessary change?
The German Post Office will have less time pressure than it previously had. Currently, at least 80% of mail sent must be delivered to the recipient's address by the following business day, and 95% by the second business day. The proposed legislation gives the post office leeway to post mail until the third business day, with a target of 95%. The fourth business day should have 99% delivery. This allows the post office to save costs, which have accumulated for years for domestic mail delivery - this also aids in climate protection. Consumers will have to wait longer on average for a letter, but they'll still receive it reliably. Those who need their mail right away can opt for a priority letter. This is more expensive than a standard letter.
What are consumers' thoughts on the anticipated longer waiting times?
The mailbox is already not as full as it once was - even bank statements and insurance policies are increasingly delivered digitally to more people instead of by post. In the digital age, most letters aren't time-sensitive; people don't care about whether a letter arrives today or tomorrow. The key factor is that it eventually reaches its destination. According to a YouGov survey conducted on June 11 among 2,577 individuals, half of respondents agree with this fundamental aspect of the reform, 37% opposes it, and the rest offered no comments.
What else is slated to change?
There may be more automated mailboxes in villages and on the outskirts of cities in the future. This is due to the stipulation to maintain a robust branch network, which was mandated in the old law and should remain in the new law. The local authority and the Federal Network Agency need to have a say in this. The upside of automats is that they're accessible round-the-clock. Manually-staffed branches - frequently in kiosks or supermarkets with post offices - have set hours, on the other hand. Other aspects of the old law remain unchanged, like the six-day delivery schedule - it will continue to be delivered on Mondays.
Does the same apply to the parcel industry?
No statutory deadlines exist for parcels, but other parts of the law will likely affect this sector as well. It revolves around better working conditions: Packages weighing more than 20 kilograms should typically be handed over by two postal employees, unless suitable technical gadgets are available. Then single-person delivery is also possible. On top of this, subcontractors, whose use the trade union Verdi ridicules, should be monitored more closely: They're obligated, among other things, to keep track of their working hours. Authorities can then compare these data to the data recorded at the time of parcel delivery - enabling detection of violations of the Working Hours Act.
Will postage rise?
In a three-year calculation process, the Federal Network Agency identifies how much latitude the post office has for raising postage. The Post Act establishes the groundwork for this. In 2019, domestic postage for a standard letter increased by 10 cents to 80 cents, while in 2022, it rose by 5 cents to 85 cents. For other types of mail, like postcards and maxi letters, prices also increased. Starting in 2025, postage may increase again. The exact amount is uncertain. However, the traffic light coalition is striving to ensure that the postage for standard letters doesn't surpass one euro.
How does Deutsche Post respond to the reform plan?
The largest player in the market, Deutsche Post, is facing the biggest challenges due to its status as a "universal service provider." Based in Bonn, the company is unperturbed by the reform. While they appreciate the reduction in time pressures for letter delivery and the subsequent retirement of letter planes, they are critical of the ways in which their competitors are being empowered and bureaucratic processes are becoming more complex. For instance, small letter companies should be granted the right to deliver parcels on behalf of the postal service.
What are the politicians saying?
Despite differing opinions among them, the members of the traffic light coalition have managed to reach a consensus on this issue. They view this agreement as a significant achievement, reflecting their ability to work together effectively. SPD member Sebastian Roloff believes that consumers will benefit from the reform, as it ensures nationwide postal services continue for six days a week in all regions of Germany and preserves the functionality of the letter market, even in the face of declining volumes. CSU politician Hansjörg Durz, like the postal service itself, is unhappy about the increase in bureaucracy. This is evident in the size of the new legislation, which expands from 19 to 80 pages.
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The vote on revising the Postal Law is scheduled for tomorrow in the Bundestag, followed by the Bundesrat. This update aims to rectify the outdated laws that dictate rapid mail delivery, even on non-busy days like Mondays. The German Post Office is set to benefit from less time pressure, allowing for delayed delivery of up to three business days for 95% of mail. Consumers may opt for priority letters if they require immediate delivery. The reform also proposes more automated mailboxes in rural areas and city outskirts, ensuring round-the-clock accessibility. Despite the increasing popularity of digital communication and online shopping, the postal services will continue to deliver six days a week. The parcel industry will be affected as well, with a focus on better working conditions for employees. Postage rates will undergo a three-year calculation process, as dictated by the Post Act. The Postal Act will also be expanded to provide greater regulatory oversight, which has drawn criticism from Deutsche Post AG. The reform has been met with mixed reactions from politicians, with some praising its preservation of postal services, while others have expressed concerns about increased bureaucracy.
