Denmark as a role model? What Deutsche Post says about the future of letters
Denmark's largest postal service provider Postnord will stop delivering letters at the end of 2025. Will Germany follow suit? And what does the trade union say?
(Image: Daniel AJ Sokolov)
The news from the north made many people sit up and take notice: Postnord, the Danish-Swedish state-owned postal service provider, will completely discontinue its traditional letter delivery service in Denmark at the end of 2025. What is seen there as a logical consequence of the digital transformation raises questions about the future of letter post in other European countries –, particularly in Germany. But Deutsche Post is giving the all-clear: the letter still has a future in this country.
"Danish Post is not Deutsche Post. The two letter markets are only comparable to a limited extent," emphasized a spokesperson for the company when asked by heise online. While the radical step is being taken in Denmark, where only smaller competitors now remain, the company is focusing on continuity in Germany: "Despite the decline in volumes, letters remain important in Germany and we assume that we will continue to process and deliver letters in Germany for many years to come."
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Number of letters is shrinking
Nevertheless, the numbers are also shrinking rapidly in the rest of Europe and in Germany: the volume fell from 14.2 billion letters in 2020 to 12.2 billion in 2024 – a decline of 8.1 percent in the last year alone.
One major difference to the situation in Denmark is the legal framework. Deutsche Post is obliged by the Postal Act to provide the universal postal service. It would not be possible to discontinue the letter service without further ado. There had previously been changes to the law in Denmark that enabled Postnord to take this step.
"If Deutsche Post were to discontinue the provision of the universal service, the Federal Network Agency would put this service out to tender in accordance with Section 27 of the Postal Act," explains the Group. "If no other company wished to take over this service, the Federal Network Agency would oblige the suitable company – and this would most likely be Deutsche Post."
Verdi: Obligation is essential
The trade union Verdi expressly welcomes the preservation of this universal service obligation. "The universal service obligation for doorstep delivery is essential," explains spokesperson Richard Rother on request. "It is particularly important for older people and people with disabilities, as not everyone has the digital skills to handle important communications via digital channels."
Despite its consistency, Deutsche Post is also facing enormous challenges: "On the one hand, the structural change from fewer and fewer letters to more parcels with rising costs, and on the other hand, the ecological restructuring of the postal infrastructure, which requires considerable investment," is how the Group describes the situation.
Employees are also feeling the effects of this change. According to Verdi, "the constant intensification of work is increasing the physical and psychological pressure on employees." The union is therefore calling for "better protection for employees" in dealing with the structural changes.
The role of the letter in the digital age
Deutsche Post's response to the digital transformation is a dual strategy: retaining the traditional letter while at the same time digitizing and modernizing. The letter announcement - a service in cooperation with 1&1 – already has almost 4 million users. The Post & DHL app has over 8 million users. Other digital services such as shipment tracking for letters and the digitization of incoming mail (PostScan) complete the portfolio.
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"The letter remains essentially an analog product in the digital age. And that's not wrong. Only the letter offers the opportunity to share handwritten, personal or protected information," says Swiss Post. The fact that we "don't cast our vote via WhatsApp and that congratulations or love notes don't work so well via email" are good reasons for retaining physical mail.
Political decisions required
Nevertheless, Deutsche Post is calling for support from politicians. The current regulatory practice of the Federal Network Agency with limits on postage prices and the promotion of competition are viewed critically.
"If the Federal Network Agency continues to set the scope for price increases for letter products as low as before and politicians continue to focus unilaterally on promoting competition in the drastically shrinking letter market, it will become more difficult to provide the universal service in the future," warns the Group.
Criticism of job cuts
While Deutsche Post is pushing for political adjustments, the trade union Verdi has already been able to negotiate important safeguards for the workforce: "Our collective agreements on protection against dismissal rule out redundancies at Deutsche Post AG until at least March 31, 2027," says spokesperson Richard Rother. However, Verdi criticizes the planned job cuts and demands "that no employees lose their jobs, e.g. employees in their probationary period and on fixed-term contracts."
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Despite the significant decline in letter volumes, Verdi is cautiously optimistic about the employment situation: "It cannot be assumed that letter mail will be discontinued. There is enough work at Deutsche Post, which not only delivers letters, but also parcels." The union emphasizes that the negotiated collective agreements both take into account the interests of employees and "do not pose a threat to the economic sustainability of Deutsche Post."
(mki)
