Strike starts at Deutsche Telekom

DUESSELDORF – Some 10 000 employees of Deutsche Telekom AG walked off their jobs on Friday, starting the first major strike against Europe’s biggest telecommunications company since it was privatised more than a decade ago.

The move was the first of what could ultimately involve more than 20 000 employees of the Bonn-based company, which has seen its earnings fall amid a customer exodus from its fixed-line systems even as it moves to expand its cell phone and Internet access base both in Germany and abroad. Members of the German services union Verdi approved a strike action on Thursday, with 96,5 per cent in favour of such a move.The issue centres on a push by Deutsche Telekom to transfer up to 50 000 staffers to a new service unit, dubbed T-Service, in a move that would allow the company to amend the employees’ labour contracts to secure more hours and lower pay.Deutsche Telekom has said it needs to transfer the workers as part of its cost-cutting plan to remain competitive.The company has seen its earnings tumble and market share erode amid fierce competition in the German domestic market.On Thursday, Deutsche Telekom said it earned 459 million euros in the January-March period, compared with 1,09 billion euros a year earlier and far less than the 773 million euros analysts polled by Dow Jones Newswires had expected.Nampa-APMembers of the German services union Verdi approved a strike action on Thursday, with 96,5 per cent in favour of such a move.The issue centres on a push by Deutsche Telekom to transfer up to 50 000 staffers to a new service unit, dubbed T-Service, in a move that would allow the company to amend the employees’ labour contracts to secure more hours and lower pay.Deutsche Telekom has said it needs to transfer the workers as part of its cost-cutting plan to remain competitive.The company has seen its earnings tumble and market share erode amid fierce competition in the German domestic market.On Thursday, Deutsche Telekom said it earned 459 million euros in the January-March period, compared with 1,09 billion euros a year earlier and far less than the 773 million euros analysts polled by Dow Jones Newswires had expected.Nampa-AP