Greek incumbent telco OTE has reached an agreement with labour unions on 2006-07 wage increases, which it hopes will help put an end to recent strike actions. According to Reporter.gr OTE employees will be granted a total pay rise of 13.1% in the two-year period backdated to January 2006. The company said that the conclusion of negotiations for the collective agreement opens the way for the initiation of negotiations on other pressing labour issues. OTE plans to reduce annual fixed line payroll expenses by 7%-8% over the period 2005-08, mainly on the back of its large-scale voluntary retirement scheme. Under the plan, headcount is expected to decline to 11,000 employees by 2008 compared to 16,300 in 2004.