Deutsche Telekom agrees pay cuts with striking workers

German phone operator Deutsche Telekom has reached an agreement with the Ver.di union on the transfer of 50,000 workers to jobs where they will be paid less.

The latest talks ended with a deal for a 6.5% pay cut rather than the 9% Deutsche Telekom had wanted. They will also have to work four hours more each week for a total of 38 hours.

Chief union negotiator Lothar Schröder said: “Our aim was to prevent management from taking money out of the employees’ pockets. We believe that we were successful. With this compromise, staff salary is assured.”

The 50,000 staff – including call centre operators and phone installers – will get a one-off cash payment and have been given guarantees that their jobs are secure until 2012

Over the last five weeks as many as 15,000 Deutsche Telekom workers have been on strike at any one time. The company said with this agreement it is on track to make savings of 500 million to 900 million euros.

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