Austria: Telekom Austria takes up internal and external interim

Last week, the President of Telekom Austria AG (TA AG), Walter Holtz, presented the new initiative of the former public monopoly, privatized in 1996 and listed on the stock market since 2000.  “We’re currently in touch with all major temporary work agencies, such as Trenkwalder or Manpower, to place our people outside” he explained.  Indeed, its largest business unit (A1 Telekom Austria – 10,000 employees) TA AG has 700 employees who kept their status of civil servant, with employment guarantee for life.  Following successive restructurings however, TA AG no longer has enough work for these workers who mostly come from technical services.  Thus, the company pays nearly 7% (4.2% at group level) of its employees to do nothing.  For TA, any solution is better than the current status quo.  After launching a golden early retirement program for those over 53 (see our dispatch No.  110124) and a program of redeployment into the Police (see our dispatches No.  110095 and 091080), TA AG now chooses to appeal to temporary work for the employees who will maintain the status and remuneration of civil servants, combined with the right to return to the company.  Some of them would be redeployed with the assistance of external placement agencies.  When placement is successful, TA keeps paying 50% of these employees’ salary.  Meanwhile, TA wants to handle internally the placement of others into other businesses.  Thus, TA AG already leases several employees to the Voestalpine group, currently working on the development of its computer system.  “The management and the WC agree.  In the future, there shouldn’t be an expensive pooling system” Holtz said.  The interim experience will first affect 80 employees.  If it is conclusive, it will be offered to all.