EMCC European Monitoring Centre on Change

Deutsche Telekom

Company/Organisation:
Deutsche Telekom

Geographic Location

Country: Germany

Company

Sector: Information / communication
Telecommunications
61 - Telecommunications
Group: Deutsche Telekom

Employment Effects

Announcement Date: 21-12-2004
Planned Job Reductions min: 3680
Planned Job Reductions max: 20000
Type of Restructuring: Internal restructuring
Employment Effect Start: 01-04-2006

Additional Information

German telecommunications operator Deutsche Telekom will cut 20,000 jobs at its subsidiary T-Com until the end of 2008. In a first step 3,680 jobs were cut by 1 April 2006. A second wave of job cuts is planned to take place by 1 September 2006. However, direct dismissals for economic reasons remain excluded until 31 December 2008 due to a collective agreement concluded between Deutsche Telekom and the United Services Union (Vereinte Dienstleistungsgewerkschaft, ver.di) in March 2004. Within a procedure known as ‘reconcilement of interests’ (Interessenausgleich), Deutsche Telekom and the company works council agreed on the terms and conditions of the planned job reduction. This agreement included a commitment by the company to create 6,083 new jobs in 2006.