PostCom Tightens Control Over Postal Service Providers

The number of postal service providers is steadily increasing in the postal market. This development is accompanied by a growing trend towards outsourcing to subcontractors. PostCom considers it critical that, due to intense competition, the likelihood of violations of industry-standard working conditions is rising.

(Bern) PostCom ensures that the industry-standard working conditions in the postal market are adhered to by the over 200 companies currently registered with it. As part of its monitoring practice, PostCom selects companies in the postal sector for in-depth inspections based on specific criteria regarding their working conditions. Based on findings from the annual reports that providers must submit, as well as a risk assessment and review of business models, the regulatory authority has adopted a procedure for which providers will be specifically monitored in 2021.

Focus on Collaboration with Subcontractors

PostCom pays special attention to the issue of subcontractors in the postal sector. Companies that operate exclusively as subcontractors cannot be directly monitored by PostCom, as they are not required to report. Control is carried out through the registered postal service providers. If such a subcontractor generates more than 50 percent of its annual revenue from postal services, the registered provider is obligated to ensure that these subcontractors agree in writing to adhere to industry-standard working conditions for their employees.

Supervisory Measure Against a Provider

The expert secretariat has received information and documents indicating violations in this area. At its meeting on May 6, 2021, PostCom issued a supervisory measure against a reported postal service provider after reviewing its agreements with its subcontractors.

According to PostCom’s assessment, the aforementioned agreements do not guarantee that the subcontractors adhere to industry-standard working conditions. Therefore, the regulatory authority has requested the provider to renegotiate these agreements and submit them to PostCom by mid-September 2021. The supervisory measure under Art. 24 of the Postal Act can be challenged in the Federal Administrative Court, and the decision will not be published.

Various Violations Sanctioned

In recent years, PostCom has conducted several supervisory procedures against postal service providers that have violated reporting obligations, failed to provide information, or did not comply with requirements regarding working conditions. In determining sanctions, PostCom particularly considers the severity of the violation and the financial circumstances of the provider. The maximum administrative sanction amounts to up to 10% of the average revenue generated from postal services in the last three business years, according to Art. 25 PG. In addition to administrative supervisory measures, PostCom issued 14 penalty notices in 2020 against responsible individuals for violations of reporting obligations. The decisions are published on PostCom’s website.

Reporting Obligation

Every company that operates as a commercial postal service provider in its own name must register with PostCom within two months of starting operations. Postal service providers transport addressed packages up to 30 kg, addressed letters up to 2 kg, newspapers and magazines, as well as courier and express shipments. Companies with revenues of 500,000 francs or more are subject to the regular reporting obligation, while those with revenues below 500,000 francs are subject to the simplified reporting obligation (see Art. 4 PG and Art. 3 ff. VPG).

About PostCom

The Federal Postal Commission PostCom oversees the quality of basic postal services and advocates for sustainable development in the postal market. It informs the public about its activities and proposes concrete measures to the Federal Council. The commission consists of seven members elected by the Federal Council and has a specialized secretariat. As an independent authority, it is only administratively affiliated with the Federal Department of the Environment, Transport, Energy and Communications (UVEK).

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