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Collective wage agreement: Full package for T-Systems completed

  • T-Systems’ transformation program to be socially acceptable
  • Waiver of termination rights to go into force after transformation is complete
  • Salaries to increase in two steps by a total of 3.5 percent starting in June 2014

On Wednesday employers and Ver.di reached an agreement in the collective wage negotiations for the approximately 20,000 T-Systems employees subject to the Master Collective Wage Agreement in Germany, putting an end to a difficult negotiation process. "The collective wage agreement is a well-balanced and comprehensive package, making it an important building block for our transformation program. It allows us to support the necessary personnel restructuring in a socially responsible way while offering a viable wage increase,” says T-Systems CEO Reinhard Clemens. “The overall package helps us to master the enormous price and cost pressures that we face in our industry and allows us to reposition ourselves for the digitization of our customers’ business models.”

The new collective wage agreement provides a comprehensive package of measures to carry out T-Systems’ two-year transformation program as socially acceptably as possible through transfer incentives, severance packages and partial retirement offers. A waiver of termination rights will then come into effect once the transformation has been successfully completed. For the protection against dismissal to go into force, the Market Unit and Telekom IT must first reach their respective goals in terms of employee numbers by the end of 2015. If this is achieved, a period of protection against dismissal will take effect for up to 24 months.

The collective wage agreement also stipulates a 1.5-percent wage increase for employees from June 1, 2014, and a 2.0-percent increase from April 1, 2015. It will apply retroactively from April 2014 and will run for a period of two years.

Comprehensive restructuring of T-Systems This agreement is in the fourth round of negotiations and takes place against the backdrop of the comprehensive restructuring program being carried out at T-Systems. T-Systems’ business model will be developed to meet the increased digitization of businesses in the future. This approach is why the Deutsche Telekom subsidiary is investing in digital areas of the future such as connected cars, healthcare, energy, cloud computing and cyber security.

Traditional ICT services, which are mainly based on outsourcing models, are being transformed so that they are economically viable for T-Systems as a European provider. The transformation is expected to happen over a period of two years. Likewise, the reorganization of the Group’s internal IT structures, which began in 2011 and is now known as Telekom IT, will also continue to be implemented along the same lines.

Deutsche Telekom AG Corporate Communications Tel.: +49 228 181 - 4949 E-mail: medien@telekom.de Media representatives can find more information here: www.telekom.com/medien and www.telekom.com/fotos http://twitter.com/deutschetelekom

About Deutsche Telekom Deutsche Telekom is one of the world’s leading integrated telecommunications companies with over 142 million mobile customers, 31 million fixed-network lines and more than 17 million broadband lines (as of December 31, 2013). The Group provides fixed network, mobile communications, Internet and IPTV products and services for consumers and ICT solutions for business customers and corporate customers. Deutsche Telekom is present in around 50 countries and has approximately 229,000 employees worldwide. The Group generated revenues of EUR 60,1 billion in the 2013 financial year – more than half of it outside Germany.

About T-Systems Drawing on a global infrastructure of data centers and networks, T-Systems operates information and communication technology (ICT) systems for multinational corporations and public sector institutions. T-Systems provides integrated solutions for the networked future of business and society. Some 50,000 employees at T-Systems combine industry expertise and ICT innovations to add significant value to the digitization strategies and core business of customers all over the world. T-Systems generated revenue of around EUR 9,5 billion in the 2013 financial year.

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