Result of arbitration leads to total arithmetical burden of 2.25 percent - Significant increase in productivity through reduction of paid screen breaks - freeze after one-time payment and increase of 3.0 percent from November for employees The Board of Management of Deutsche Telekom AG has decided to accept the arbitrator's recommendation in the collective negotiations between Deutsche Telekom AG and the trade union ver.di. In contrast to ver.di's demands for a total of 6.7 percent, the arbitrator's recommendation represents a total arithmetical burden of 2.25 percent. In addition, screen breaks are being considerably shortened and brought in line with market levels.
"We did not take the easy way out with this decision. As with any compromise, this arbitral recommendation does not fulfill all our expectations. Increasing collective wages and salaries by 3.0 percent from November gives totally the wrong signal to T-Com and directly endangers more jobs in our fixed network arm," said Labor Director Dr. Heinz Klinkhammer. "The increase is cushioned somewhat, however, by the shortening of paid screen breaks and the discontinuation of other breaks."
The Chairman of the arbitration proceedings, former federal minister Dr. Heiner Geißler, submitted a proposal for a compromise on Friday that included a linear increase in the salaries of Deutsche Telekom employees by 3.0 percent from. A one-time payment of EUR 350 is to be followed by a freeze until the end of October. Interns will receive a one-time payment of EUR 70 for 2006. Special provisions have also been made for civil servants. They are to receive a one-time payment of up to EUR 735.
An important element for Deutsche Telekom is that the paid screen breaks are being brought in line with market levels and reduced to 5 minutes per hour, and that agreements providing for other paid breaks in service and installation areas where work is outsourced are being revoked. This will significantly improve productivity at T-Com . The reduction of paid breaks represents an increase in productivity of around 3.7 percent at call center and as much as 7 percent in the areas of service and installation.
Today, Tuesday, the union's higher collective bargaining commission also approved the arbitrator's proposal. As such, an agreement has now been reached following arbitration.