Austria: Telekom Austria offers “golden early retirement” to its employees

800 requests for “golden early retirement” are currently pending at Telekom Austria’s personnel services.  “The program is a total success.  I think that, this year, 350 colleagues are going to enjoy it” declared Walter Hotz, chairman of the WC.  Telekom Austria currently employs 10,000 people, 10% being aged 53+.  Part of them, mostly technicians, still has the status of public civil servant.  Others are “just” employees but have acquired the right to lifelong employment.  To limit or at least maintain its workforce, Telekom Austria decided to make an offer that is hard to say no to to employees closest to retirement age.  The process is known as “Karenzierung” and is worded like the process for women on parental leave.  Employees are made available but still tied to the company.  Therefore, “Karenzierung” isn’t early retirement per se, but a similar, better transition system.  When employees choose this offer, they receive 60-70% of their last gross salary, bonuses included.  Besides, they are entitled to work elsewhere as long as it isn’t a rival company.  This will go until statutory retirement age.  The beneficiaries are civil servants aged 53+ and employees with a similar status aged 55+.  “It’s the best way to reduce the workforce without laying off, but those who want to take advantage of it this year have to hurry up because the deadline to present a request is February 28, 2011” Hotz explained.  The 800 pending requests won’t all be satisfied this year.  The program is expensive and can only be done in one blow.  Telekom Austria plans to go on until 2014 and determine, each year, the number of ‘elects’ depending on its funding capacity.