Package deal agreed at Arcor

In November 1998, the German telecommunications company Arcor and the GdED railworkers' union signed a package of nine collective agreements, the first to be concluded in the firm.

At the beginning of November 1998, the telecommunications company, Arcor- which originated from the communications branch of the formerly state-owned German rail company, and today is a subsidiary of Mannesmann AG- and the railworkers' union (Gewerkschaft der Eisenbahner Deutschlands, GdED) for the first time signed a package of nine collective agreements, after two years of negotiations. GdED states that it organises 75% of Arcor's roughly 6,500 employees.

The most important provisions of the package, which will come into force on 1 January 1999, are as follows:

• a modern remuneration system which includes an annual bonus of an extra month's salary, plus DEM 800 in holiday payments;

• 30 days annual holiday and three extra days for shiftworkers;

• a 38-hour working week;

• a working time "corridor" - individual weekly working hours between 35 and 40 hours may be agreed;

• at the age of 55 or more, weekly working hours may be reduced by two hours with full wage compensation; and

• all employees receive a ticket for public transport paid for by the employer.

According to GdED vice-chair, Norbert Hansen, the agreement will have a pilot function for newly established companies in this industry.

Other collective agreements in the relatively new telecommunications sector have been agreed at Otelo (DE9806168N) and Deutsche Telekom AG (DE9704109N, DE9810181N and DE9709132N).