Copenhagen Municipality has terminated its letter delivery agreement with DAO, effective at the end of August 2026. The city says the distribution company cannot guarantee collective agreement pay at its partner firms.
DR reports that the municipality has canceled the contract covering letter delivery to Copenhagen mailboxes. Lord Mayor Sisse Marie Welling of the Socialist People’s Party said the decision follows DAO’s inability to fully meet the city’s requirements on pay and working conditions.
Welling said DAO cannot guarantee that its partner companies pay their employees at collective agreement levels. She described compliant labor conditions as a fixed principle for any company doing business with Copenhagen Municipality.
DAO responded to the decision by sending its own letter to the transport minister on Monday evening. The company told Ritzau that it had been presented with extensive requirements from the municipality, including labor clauses for DAO shops where letters and parcels are handed in.
According to DAO, those shop related clauses have since been settled. Company director Hans Peter Nissen wrote that the entire distribution chain is now covered, but that one dispute remains unresolved. It concerns who may raise and sanction possible breaches of the rules.
Welling now plans to invite the transport minister, a party colleague, to a meeting. The talks are meant to address stronger control of suppliers and subcontractors, and proper pay and working conditions in future contracts.
The Ministry of Transport’s press unit said the minister did not wish to give an interview before receiving and reading the letter from the lord mayor. DAO’s own letter to the minister was sent before the municipality’s message.
What happens after August
The arrangement for the municipality’s letter delivery after August is still undecided. Welling said that, at least initially, it will be up to each individual municipal department to organize deliveries.
She said Copenhageners should not be afraid of missing their letters. She also acknowledged that the situation will be awkward for the municipality, which must now find a way to secure delivery during the interim period.
DAO took over letter delivery in Denmark from 2026. The company’s performance has been under scrutiny since then, including complaints about delivery and questions about reliable mail delivery.
The dispute between the municipality and DAO has not been resolved through negotiation. Both sides have now asked the transport minister to become involved in the matter.
