DT presents cost cutting plan for OTE; trade union protests

29 Dec 2010

Deutsche Telekom (DT) has formulated a programme to cut operating costs, including wage cuts, at its part-owned Greek unit OTE, said DT’s Southeast Europe chief Guido Kerkhoff (a non executive board member of OTE) in an interview with Financial Times Deutschland. Kerkhoff said that OTE s fixed telephony division requires radical changes, as payroll costs reach 37% of revenues, compared to the 20% ratio at DT. However, the Federation of Telecommunication Workers (OME-OTE) trade union sharply criticised Kerhoff’s comments. As reported by Ana.gr, on 28 December 2010 OME-OTE president Panagiotis Koutras told ANA-MPA that Greece has laws and individual business labour contracts that regulate every issue concerning remuneration costs, whilst no comparison can be made between OTE and DT because their operating structure is different. Koutras went on to blame OTE’s loss of revenues on policies followed by the Greek communications regulator, EETT, claiming that EETT over-regulates the incumbent’s services whilst favouring its rivals to the extent of allowing them to ‘violate market and labour laws.’

Greece, Cosmote, Deutsche Telekom (DT)