Subsidiary DMC loses contract in Geneva and Vaud
The employees of Direct Mail Company AG (DMC), a Swiss Post subsidiary, deliver newspapers in Geneva and Vaud. They also distribute the free weekly newspapers “GHI” and “Lausanne Cités”. The newspaper publisher has now decided to change the arrangements for the publication of its newspapers. This means DMC will lose a large part of the contract, reducing the order volume for DMC. As a result, DMC plans to reduce the working hours of employees in Geneva and Vaud as of 31 December 2022. DMC’s Executive Board deeply regrets the loss of the contract and the steps which have to be taken as a result. The advertising delivery staff work at a minimum employment level of 5 to 20 percent for DMC. The employees can present proposals on how the reduction of working hours could be avoided as part of a consultation process. Swiss Post and DMC are holding talks with the social partners.
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Swiss Post and DMC hold talks with the social partners
Digitization has been changing the newspaper landscape and advertising market in Switzerland for some time with people increasingly obtaining information online. They are reading printed newspapers in paper format less and less, putting publishers and advertisers under pressure. High energy and paper prices are currently exacerbating the situation. This is having a major impact in Geneva and Vaud on the Swiss Post subsidiary Direct Mail Company AG (DMC): the publisher of the free weekly newspapers “GHI” and “Lausanne Cités” has decided to cut the number of printed copies of the weekly titles in some regions, reducing the order volume for DMC.
This is likely to result in a reduction of working hours for 52 employees in the region who currently account for 8.3 FTEs. The advertising delivery staff work at a minimum employment level of 5 to 20 percent for DMC as an additional source of income.
Swiss Post and DMC hold talks with the social partners
DMC notified the employees concerned on 5 December 2022 in an information letter. These employees now have the opportunity to put forward proposals up until 20 December 2022 on how the planned amendment to the employment relationship could be avoided as part of a consultation process.
Swiss Post and DMC deeply regret having to take this step. Swiss Post and DMC are in talks with the social partners and are also discussing possible support measures to make the planned working time reduction as socially acceptable as possible for employees.