KPN Telecom redundancy plan accepted

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In late November 1998, KPN Telecom reached an agreement with trade unions in the Netherlands on the company's far-reaching reorganisation plans. Initially, union members' reactions to the agreement varied widely. However, a slightly amended plan was subsequently accepted.

In late November 1998, Dutch trade unions signed an agreement with KPN Telecom on the company's redundancy plan covering its forthcoming reorganisation, which could result in the loss of up to 4,000 jobs (NL9811106F). One of the business units to be hit hardest by the reorganisation, the company's telephone information service, is facing closure of 12 of its 18 departments. KPN is planning to concentrate the division's activities in a smaller number of branches.

Temporary employees will be most affected by the changes: 700 of the 800 temporary positions currently filled at the telephone information service will disappear before 2001. The consequences for permanent staff appear less dramatic: the number of jobs will be cut back from 1,100 to 850, and measures will be taken to compensate for most of the associated social consequences. The unions do not expect compulsory redundancies amongst permanent staff, in view of the fact that the company has stopped recruiting external staff. Permanent staff will also receive help in finding new jobs over the coming two years. However, this does not mean an end to all the problems: most of the staff at the telephone information service are female employees working on a part-time basis. It remains to be seen whether these employees will be eligible for other positions within the group.

Union reactions to the agreement have been mixed. Employees are concerned mainly that the possibility of compulsory redundancies has not been ruled out. The agreement was rejected at two regional meetings, but on 18 December the majority of the members of the relevant unions affiliated to the FNV and CNV confederations accepted a slightly amended plan.