Greece - OTE is to freee wages for two years and to eliminate some benefits

[suite 101] The Hellenic Telecom OTE Worker's Union OME-OTE and OTE management have ratified the corporations' wage policies for 2011.

Kathimerini morning newspaper reports on Tuesday the 28th of December 2010 that Hellenic Telecom OTE management and OTE employees through their union representatives have agreed to a renewed remuneration policy to help the corporation through these trouble times.

The OTE Telecom agreement includes a two year wage freeze, as well the reduction or total elimination of certain extra benefits that were awarded to Hellenic Telecom OTE employees during the years.

The final settlement between the employees’ union and OTE management ended harmoniously after 11 months of laborious collective bargaining; the workers’ union consented to the wage freeze whilst securing current wage levels as a reference base for current and future negotiations.

Salary Freeze and Benefit Reduction

In addition, the latest agreement includes overtime remuneration reduction from 140% to 120% of current salary levels, and a 50% reduction in the ½ hour remuneration that drivers and chauffeurs earn for heating company car engines.

Deutsche Telecom’s CEO (Deutsche Telecom owes 30% of Hellenic Telecom OTE while the Hellenic Government owes 20% of Hellenic Telecom) outlined his preference that OTE moves towards wage reductions –as has been stipulated by Greek finance minister Papakonstantinou- and additionally towards staff reductions so that OTE matches Deutsche Telecom’s costs towards revenues; Deutsche Telecom’s employee costs are 20% of its total revenue while OTE’s costs are 37% of OTE’s revenues.

The OTE union reps ( OME OTE ) dispute the Deutsche figures since, as OME OTE points out, the figures aren’t based on equivalent accounting methods or staff enumeration. In addition, wage reductions as recommended by the Greek government would be unilaterally across the board, and are likely to receive little support from OTE management who would also be subjected to such wage reductions.

Hellenic Telecommunications: OTE moves towards Wage Freeze