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  • 2018 Corporate Responsibility Report

Implementation of the 2017 collective bargaining round and other harmonizations in 2018

In the course of the 2018 collective bargaining round, the incomes of employees covered by collective agreements at Deutsche Telekom in German were increased.

  • Starting in 2018, the salaries of roughly 60,000 employees covered by collective agreements at Deutsche Telekom AG and in the Germany operating segment were raised by a total of 5.2 percent for employees in the lower pay groups and 4.8 percent for employees in the higher pay groups. The first salary increase took effect on May 1, 2018. The second salary increase will be implemented on May 1, 2019. The duration of the new collective wage agreements is mostly 26 months and they are scheduled to end on March 31, 2020.
  • Salaries at T-Systems for some 20,000 employees under collective agreements will be raised in two phases by a total of 5.5 percent for employees in the lower pay groups and 4.5 percent for employees in the higher pay groups. After the first increase on January 1, 2019, the second increase will take place on January 1, 2020. The collective wage agreement has a term of 33 months and will expire on December 31, 2020.
  • The wages of apprentices and students in cooperative study programs will also be increased in two phases. After the first increase of 40 euros effective May 1, 2018, there will be another increase of 30 euros in May 2019. Subsistence allowance for apprentices not living with their parents was increased by 20 euros to 250 euros.

The standardization and harmonization of our German remuneration systems adopted in the 2016 collective bargaining round was further driven forward. The first successful collective bargaining took place in 2017; the results will be implemented on January 1, 2018, and January 1, 2019. Collective bargaining on additional harmonization topics was continued in 2018.

Apart from a sharp increase in salary, we also intend, where possible, to introduce the new “additional days off” part-time model at companies covered by a collective bargaining agreement in the Group in Germany. Under the new part-time model, employees have the option to reduce their contractual weekly working hours, but to continue to work full-time and take the hours they have earned as block leave over the course of the year.

Harmonization of remuneration systems

In the course of the 2016 collective bargaining round, we and the union identified that there was a need to harmonize the remuneration systems within the Group in Germany and subsequently conducted negotiations on that issue. Salaries will be harmonized at all companies in Germany covered by a collective bargaining agreement, with the exception of T-Systems. The following step-by-step adjustments were agreed:

Changes with effect from January 1, 2018:

  • Conversion from an annual target salary to a fixed annual salary, in conjunction with performance-related bonuses, for consumer sales.
  • Standardization of the times for increments in the salary range for each salary group.
  • Gradual conversion of non-sales from an annual target salary to a fixed annual salary. The current compensation system is retained for 2018; however, the target achievement and hence payment of the variable component was set at 100 percent.

Changes with effect from January 1, 2019:

  • Complete conversion of non-sales employees to a fixed annual salary, hence elimination of variable compensation for non-sales.
  • The arrangements on variable remuneration will also be gradually harmonized at T-Systems as of 2019. Non-sales at T-Systems will likewise be converted to a fixed annual salary in 2021.