Germany: Verdi union and Deutsche Telekom agree on increases ranging between 3.15 and 5.15%

The intervention of a mediator, four meetings in three months and several warning strikes were necessary for the social partners to agree on wage increase counting among the highest increases since the beginning of the year.  It is possible that the sale of the American subsidiary – for the heaven-sent amount of €27.5bn – came at the right moment to grease the wheels.  The agreement affects 57,000 out of the 100,000 employees of DT.  Employees who are not concerned are in fact civil servants with the same status as before the company became private.  Out of these 57,000 employees, 30,000 work for Telekom Deutschland GmbH (sale to individuals – all products) and Telekom AG.  They will get a 3.15% wage increase on April 1, 2011 and job safety until the end of 2012.  Since there was no increase for the first three months of the year, the effective wage increase for 2011 will be of 2.25%.  The other 27,000 employees concerned work for the company’s services units.  In addition to the 3.15% increase, they get another 2%, which is actually an adjustment.  In the previous agreement signed at the end of 2009, they had to give up an additional 2.17% increase.  However, they have job security until the end of 2013 and are covered by a pact on continuous education providing for at least three slots for individual training each year.  Finally, DT’s 10,000 apprentices will get €40 more each month.  Verdi and Deutsche Telekom said they were satisfied by this agreement.
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ncrease for 2011 will be of 2.25%. The other 27,000 employees concerned work for the company’s services units. In addition to the 3.15% increase, they get another 2%, which is actually an adjustment. In the previous agreement signed at the end of 2009, they had to give up an additional 2.17% increase. However, they have job security until the end of 2013 and are covered by a pact on continuous education providing for at least three slots for individual training each year. Finally, DT’s 10,

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