- Hellenic Telecom: OTE Announces Wage Freeze - Antonis Hontzeas
The 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 troubled 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.
No Staff Reductions
Although wage freezes have been quietly agreed between the OTE workers, their representatives and Hellenic Telecom management, staff reductions seem unlikely since this requires that reconvening of a special committee with a unanimous vote towards such reductions; the said committee is composed 1/3 of a Deutsche representative and 1/3 of a Greek government representative which would in all probability never agree – in lieu of the present explosive social climate in Greece – to staff reductions at least of permanent (Gamma Kappa Pi) staff.
Finally, OTE is expected to refinance its existing floated bond of 1.5 billion Euro thus receiving from the market (or Deutsche Telecom) about 500 million Euros. The company’s current reserves run at about 850 Euro with a 300 million Euro strong credit line.
Source:
Kathimerini, Tuesday 28 December 2010, Article by Vaggelis Mandravelis, pg. 25
Kathimerini, Tuesday 28 December 2010, pg. 32
Antonis Hontzeas - Antonis Hontzeas has been in the forefront of the Telecommunications industry for over twenty years. Tenures include positions ranging ...
