Privatisation, Restructuring and Employee Retrenchment: Issues and Policy Responses OECD Conference Istanbul 10 October 2002 Christian Lepsien -Attorney-at-LawHuman Resources Management, Deutsche Telekom AG, Bonn ===!"§ Deutsche Telekom.
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Privatisation, Restructuring and Employee Retrenchment: Issues and Policy Responses OECD Conference Istanbul 10 October 2002 Christian Lepsien -Attorney-at-LawHuman Resources Management, Deutsche Telekom AG, Bonn ===!"§ Deutsche Telekom Deutsche Telekom Personnel Restructuring Government Agency Turns Global Player 1 The Transformation 2 Personnel restructuring within the Group 3 Support from social partners for personnel restructuring ===!"§ Deutsche Telekom October 2002 From a National to a Global Player How Deutsche Telekom Has Evolved Since 1990 After first After second post Prior to first post & telecoms post & telecoms & telecoms reform reform reform Deutsche Bundespost ===!"§ Deutsche Bundespost Telekom 1990 Deutsche Telekom Deutsche Telekom AG 1995 2000 2001 October 2002 Deutsche Telekom Personnel Restructuring Government Agency Turns Global Player 1 The Transformation 2 Personnel restructuring within the Group 3 Support from social partners for personnel restructuring ===!"§ Deutsche Telekom October 2002 Deutsche Telekom Personnel Restructuring From a National to a Global Player ===!"§ 254,806 228,912 Holding 6,085 Telekom AG 222,827 Acquisitions 90,000 Telekom AG departures 103,079 164,806 Additions 38,973 Transfer AG Affiliates: 23,492 31.12.94 Deutsche Telekom Holding 41,919 Telekom AG 122,887 30.06.02 October 2002 Human Resources Rightsizing and Rebalancing Acceptance of Human Resources Rightsizing Measures 1995 - 1998 1999 17.6 % 16.7 % 33.4* % ca. 70,000 0.4 % 7.4 % 13.0 % 2001 ca. 11,000 29.1 % 56.9 %* 5.0% 14.7 % 5.4 % 3.3 % 5.3 % 7.5 % 3.5 % 1.0 % ca. 9,000 79.3 %* 0.3 % Natural fluctuation Early retirement civil-s.-status empl. Severance pay Early-retirement tariff staff Job-switch bonus civil-s.-status empl. Switch to third-party employer *Incl. invalidity, dismissals, resignations and other natural fluctuations ===!"§ Deutsche Telekom October 2002 Deutsche Telekom Employees Abroad Employees x 1,000 80 70 % of Group workforce Total 1998 1999 16,815 23,098 HT Hrvatski Telekom 40 30 11.7% 20 8.5% 16,665 17,258 T-Mobile Czech 2,479 2,536 8,510 9,134 8,907 527 603 566 T-Online France 469 520 452 Ya.Com 243 274 254 SIRIS 339 Eurobell 692 T-Mobile Austria 2,419 2,971 2.813 2,642 T-Mobile UK 4,050 6,876 6,384 6,216 13,298 11,296 9,523 Slovenske Telekomm. 10 0 ‘98 ‘99 ‘00 ‘01 6.‘02 ===!"§ Deutsche Telekom 6.2002 11,053 11,067 60 21.0% 2001 47,818 78,722 76,243 30.6% 29.9% T-Mobile USA debis Systemhaus 50 2000 MATAV 16,595 15,365 Others 220 233 14,351 16,634 16,241 573 867 581 October 2002 Deutsche Telekom Personnel Restructuring The Role of the Social Partners 1 The Transformation 2 Personnel restructuring within the Group 3 Support from social partners for personnel restructuring ===!"§ Deutsche Telekom October 2002 Deutsche Telekom Personnel Restructuring Strategic Co-operation with Deutsche Telekom’s Social Partners Trade Unions Ver.di (civil service, banking, retail workers, etc) IG Metall (metal workers) Employee representation committees within the Group Supervisory Board Group works councils Central works councils Local works councils Kommunikationsgewerkschaft DPV (DPV KOM) • Corporate Group Executive (communications) Staff Representation Committee Christliche Gewerkschaft Post und Telekommunikation • Executive Staff (CGPT) Representation Committee (Christian; post&telecom) ===!"§ Deutsche Telekom October 2002 Human Resources Rightsizing and Rebalancing Key Elements Agreement with ver.di creates the necessary conditions To solicit close and reliable support from social partners for personnel restructuring measures within the Group To strengthen the company and provide added job security in today‘s competitive marketplace To create forward-looking job structures Objective of Key Elements Agreement Inclusion of ver.di/central works council in the bodies set up to facilitate personnel restructuring measures (extended Deutsche Telekom sites committee/advisory committees) Provisions for necessary qualifications measures/ skills data base Measures to improve human resources rebalancing and transfers within the Group A systematic waiver, until the end of 2004, of the right to dismiss personnel for operational reasons Major items of agreement ===!"§ Deutsche Telekom October 2002 Privatisation, Restructuring and Employee Retrenchment: Issues and Policy Responses Thank you for your attention! Christian Lepsien -Attorney-at-LawHuman Resources Management, Deutsche Telekom AG, Bonn ===!"§ Deutsche Telekom