Dow Jones – Telecom Subsidiary T-Systems and Verdi have reached an agreement on collective bargaining after almost eight months of talks. Among other things, the two sides agreed to pay increases in the next and next year for approximately 11,000 employees linked to collective bargaining contracts,
Now the wage bill is expected to increase wages by 3.0% (wage groups 1-5) and 2.0% (in other wage groups) as of 1 January 2019 in detail. From 1 January 2020, there will be a further 2.5% increase in fees for all pay groups. The collective agreement should last until 31 December 2020.
"Given the difficult economic situation, we can be pleased with the outcome," Verdie's negotiator Michael Gekel said. "This is a solid package."
T-Systems takes care of Deutsche Telekom's large customers. Collective bargaining began in early April. The Union has demanded a 5.5% wage increase of twelve months.
A provision to extend the exclusion of redundancy payments is not included in the tariff result. This protection expires at the end of the year. T-Systems plans to cut around 10,000 worldwide jobs over the next three years, including 6,000 in Germany, while avoiding redundancies as much as possible.
The Union's grand tariff committee must approve the outcome of the negotiations, it will be held on 30 November 2018.
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DJG / SHA / AOC
(END) Dow Jones Newswires
26 November 2018 08:40 ET (13:40 GMT)