Competitiveness

Via RTE.ie

Workers at Eircom are to vote on industrial action in a dispute over a 2% pay increase…..The unions say they are entitled to the 2% increase without pre-conditions.

A stark comparison with Deutsche Telekom:

Under the agreement reached Wednesday, weekly working hours will be extended from 34 to 38 hours without a salary increase. Measures taken to make working hours more flexible to improve service include making Saturday a regular working day.

Salaries are also being cut by 6.5 per cent to a more competitive level, although the reduction is being cushioned “step by step in a socially conscious manner” over a period of 42 months. Deutsche Telekom initially moved for cuts of 9 per cent.

This entry was posted on Friday, June 22nd, 2007 at 11:21 am and is filed under Germany, Politics. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.

2 Responses to “Competitiveness”

  1. amadan Says:

    I don’t think that is a fair comparison on a number of grounds.

    If the workers and management had agreed a pay deal and then the management renege on that deal and refuse to make any payments unless new conditions are met, then the workers have a right to be aggrieved.

    Also, what is the salary difference between the affected Eircom workers and the affected Deutsche Telecom workers? Are you comparing like for like? Maybe these Deutsche Telecom workers are getting paid a lot more than the Eircom workers, and maybe the 2% pay rise would make them equivalent after the Deutsche telecom workers’ salaries are cut.

  2. Joe Says:

    I’m not saying they don’t deserve it. In fact I bet a lot of people would think 2% is modest since inflation is at 5%

    The point is that while our costs are increasing, other economies are decreasing costs in a sector we consider important to our future.

    I don’t think you can actually compare salaries fairly because of the huge difference in the amount of tax paid, the difference in social services and supports etc.

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