Sunday, March 15, 2009

Salaries at Deutsche Telekom to Rise 5.5% over 24 Months

Deutsche Telekom and its main labor union, Verdi, have reached agreement by which pay will increase by a total of 5.5 percent in two steps over a period of 24 months. The agreement covers pay for employees at Deutsche Telekom and its service companies. Pay will rise by 3 percent backdated to January 1, 2009 and by 2.5 percent the following year.

In addition to this, employees will be officially protected from dismissal for another year. This means that employees at Deutsche Telekom are guaranteed jobs up until the end of 2010 and employees in the service companies until the end of 2013. A year's extension has also been agreed for the ban on selling the service companies. Hence, it will not expire until the end of 2011.

"The result is a reasonable compromise. We have succeeded in working out a differentiated solution that is tailored to the varying needs of our employees. At the same time, it takes the company's economic requirements into account. Additionally, the result keeps our service companies on track in terms of competitiveness," stated Thomas Sattelberger, Chief Human Resources Officer at Deutsche Telekom.