GO
Loading...

Deutsche Telekom Workers Strike

Some 12,000 workers at Deutsche Telekom walked off the job Monday, protesting the telecommunications company's plan to reorganize its work force by transferring 50,000 staffers into separate units, union officials said.

The workers' union, ver.di, said the warning strike came as it and Deutsche Telekom embarked on a fourth round of talks about plans to transfer the workers.

Under German labor law, a company must have approval from the labor unions if it wants to implement changes with its work force.

Deutsche Telekom wants to lower the wages of part of the employees who are slated to be transferred to other units -- a move vehemently opposed by ver.di, which wants the company to guarantee jobs for a certain number of years.

The company, which has seen its earnings tumble and market share erode amid fierce competition in the German domestic market, said it needs to transfer the workers as part of its cost-cutting plan to remain competitive. It wants to complete the moves by July. The strike is the third since last week when 1,000 staffers held a strike, followed by 8,000 more on Thursday.

Deutsche Telekom employs approximately 160,000 people in Germany.

Shares of Deutsche Telekom rose nearly half a percent to 13.19 euros ($17.85) in Frankfurt.

Contact U.S. News

  • CNBC NEWSLETTERS

    Get the best of CNBC in your inbox

    Please choose a subscription

    Please enter a valid email address
    To learn more about how we use your information,
    please read our Privacy Policy.

Don't Miss

U.S. Video

  • Daymond John, FUBU founder & CEO, discuss the importance of digital literacy and employment.

  • Five occupations that employers will be hiring for most.

  • I'm bullish on crowdfunding, says Steve Case, Case Foundation chairman, discussing the risks and rewards of angel investing. And Daymond John, FUBU founder & CEO, shares his concerns about nonqualified angel investors going into the market and not getting liquidity.