Deutsche Post Stock: Labor Talks Pressure Share Price Amid Challenges

Deutsche Post's stock has experienced significant pressure, dropping from its January 2024 peak of €45.67 to approximately €34.61, as upcoming wage negotiations cast shadows over the company's financial outlook. The postal service giant faces demands from labor unions representing 170,000 employees, with calls for a 7% wage increase and additional vacation days over a twelve-month period. These demands come despite the company's previous implementation of an 11.5% average salary increase from the last collective bargaining agreement. The challenging market conditions, characterized by declining letter volumes and substantial investment requirements, further complicate the company's position, even after recent postage rate increases to €0.95 for standard letters.

Workforce Strain Intensifies Negotiations

The labor unions' position is strengthened by evidence of increasing workplace challenges, with 90% of employees regularly handling packages weighing up to 31.5 kilograms under varying weather conditions. Current entry-level salaries for delivery personnel, approximately €2,700 gross monthly, fall below the German median income, while record-high sick leave rates underscore the physical demands of the job. These factors have intensified the urgency of the upcoming negotiations, potentially impacting the company's operational costs and market performance.