Deutsche Telekom to outsource 55,000 jobs

On February 28, Telekom announced it would outsource around 55,000 jobs in a newly formed service organisation. The company, under the name of “T-Service,” is to be a wholly owned subsidiary of Deutsche Telekom and draw its workforce mainly from the Internet operations of the company. Deutsche Telekom simultaneously announced plans to bring budget-price services to the market.

For Telekom employees, this manoeuvre will mean a drastic attack on their working conditions. Working hours will be increased from the current 34.5 hours to 40 or 40.5 hours per week. According to the company, wages will however remain “constant,” meaning a reduction in the hourly wage.

The exact number of employees affected by the scheme is not clear. Various sources, including unnamed company representatives, business figures and the media, have stated a further 25,000 workers will be moved to the new organisation. Those who are not outsourced face restructuring within their existing departments.

On the evening immediately after the announcement, the company’s supervisory board, which includes representatives from the trade unions, approved the plans of company chairman René Obermann in the face of opposition by union and workers’ council representatives. The deciding vote was cast by the supervisory board’s chairman, Klaus Zumwinkel. Within large German companies, this event was highly unusual, as opposing parties usually seek to arrange some sort of compromise.

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