Fair and market-oriented pay and benefits are a key tool to steer Telekom in times of change and high competitive pressure. Telekom also addresses this topic in its Social Charter.
Deutsche Telekom has a close relationship with employee representatives and pays all of its employees fairly. Even temps working for Telekom, who are paid by third parties, receive competitive rates of pay. The outcome of collective bargaining is one example of our successful cooperation with our employees. In the 2012 collective bargaining round the negotiating partners agreed on the following terms for the employees of Telekom Deutschland and T-Systems:
- The salaries of the around 50,000 Telekom Deutschland employees are being raised by a total of 6.5 percent in three phases: by 2.3 percent beginning in May 2012 and by 2.1 percent in each of two phases in 2013. The new collective pay agreement went into effect on February 1, 2012, and has a term of 24 months.
- The negotiation partners also agreed on new conditions for variable remuneration for Telekom Deutschland employees. The previously individual performance-based components will be based on corporate targets in future. In some cases, these variable components will be guaranteed, and in some cases paid out monthly.
- T-Systems' 18,500 employees also receive a 6.5 percent raise in several phases: 2.3 percent retroactively from May 1, 2012, 2.1 percent from January 1 and another 2.1 percent from September 1, 2013. The new collective agreement went into effect retroactively on May 1, 2012, and has a term of 27 months.
- Protection against dismissal for T-Systems employees has been extended until the end of 2013.
- For employees outside Sales, variable pay will be solely based on T-Systems' corporate targets and at least 50 percent will be guaranteed. Targets for variable pay are mainly based on corporate targets at T-Systems' international subsidiaries, too. However, special payment regulations are in place in some countries in accordance with local law.
Telekom does not offer employment in low-wage sectors. Our wages considerably exceed the minimum wage of €8.50 per hour that is often demanded by trade unions for employees.
Gender-based pay analysis indicates fairness.
We have been systematically comparing the pay of male and female employees in Germany since 2009. Once again, our 2012 analysis did not indicate any significant gender-based differences in the pay of employees not covered by collective agreements and executives. Among employees covered by the collective bargaining system, we can exclude the possibility of gender-specific disadvantages, since pay is determined solely by an employee's assignment to a function group. These results prove that Deutsche Telekom practices fair pay for men and women alike and is opposed to all forms of salary discrimination. We also participated in the Logib-D project conducted by the German Federal Ministry of Family Affairs, Senior Citizens, Women and Youth to assess whether men and women were being paid equally. The study confirmed the positive results of our own analysis.
Telekom offers its employees an attractive, employer-financed company pension plan on the basis of voluntary commitments. The capital account plan is a modern, defined contribution system. In addition to the capital account plan, we also offer our employees an optional company pension scheme, which is exclusively financed by employees. This enables employees to close any retirement income gaps and, if desired, to protect themselves against occupational disability and/or secure financial support for relatives in case of death.