November 19, 2009
Media Release - Germany’s Post Office Model
Liberalization Lessons for Canada
The Frontier Centre for Public Policy today released a report which compares Germany’s post office and its recent liberalization experience and Canada Post. The study, Efficient, Competitive and Better Service: Germany’s Post Office Model and Lessons for Canada found the efficiency and competitiveness of Deutsche Post increased substantially after liberalization and privatization.
The report notes that before liberalization, Germany’s postal industry was dominated by a slow-moving, state-owned monopoly—Deutsche Post. The organization of the German postal sector resulted in limited innovation, poor customer service, below average labour productivity and high letter prices.
In its liberalization and privatization, Germany adopted the same post office model successfully initiated in Sweden and the Netherlands; it proved equally successful in Germany. The move to liberalize Deutsche Post began in the late 1990s under a left-of-centre government coalition, and took effect over one decade in stages. It was complete by January 2008.
conditions for postal employees would worsen substantially, if their jobs were not cut altogether. However, rather than cutting employees, Deutsche Post has increased its
over staff by over 100,000 workers worldwide (or 20 per cent of its workforce) since the privatization process began—including after accounting for a reduction in government employees;
“The liberalization of the postal sector in Germany and the privatization of Deutsche Post have translated into significant benefits for business and private customers in Germany, both in terms of price and service quality” writes study author Adrian Vannahme.
“The feared negative effects to universal service and working conditions have been averted and the privatization of Deutsche Post allowed the German government to sell off a struggling state-owned company and reduce public debt.
The Frontier Centre's policy paper, Efficient, Competitive and Better Service: Germany’s Post Office Model and Lessons for Canada, can be downloaded here: www.fcpp.org/publication.php/3052
For more information and to arrange an interview with the study's author, contact:
Efficient, Competitive and Better Service (Policy Series)
The Frontier Centre for Public Policy
is an independent public policy think tank whose mission is "to broaden the debate on our future through public policy research and education and to explore positive changes within our public institutions that support economic growth and opportunity."