POTSDAM/BONN (dpa-AFX) - Deutsche Telekom has reached an agreement with the trade union Verdi on a new collective wage agreement. As the parties to the agreement announced in Potsdam on Friday, wages are to rise by six percent in October. A further increase of 190 euros per month is planned for August 2025. According to Verdi's calculations, pay will increase by a total of 8.3 to 13.6 percent depending on the pay group. In addition, there will be a tax-free inflation adjustment bonus of 1550 euros, which is to be paid this July 2024. Apprentices and dual students will also receive more money. All in all, the collective agreement applies to around 58,000 employees, according to Telekom.

However, the agreement is not yet a done deal, as the union still wants to consult its members. The Verdi bargaining commission is recommending approval and will make a final decision on June 7, taking into account the results of the member survey.

In recent weeks, there have been repeated warning strikes, which have sometimes extended waiting times on the service hotline or postponed some technician appointments. Thousands of employees demonstrated for higher wages. The fourth round of negotiations in Potsdam was actually only supposed to last until Tuesday of this week. After the management improved its offer, it was extended until Friday - and now an agreement has been reached.

Verdi had originally demanded an increase of 12 percent for a 12-month contract term. Telekom's first offer, on the other hand, had included an initial increase of 4.2 percent for a 27-month contract term and a subsequent monthly increase of 150 euros. Compared to these two items, which also included other components, both sides had to make concessions. The new collective agreement applies to the majority of Telekom employees in Germany, although other agreements apply to some subsidiaries.

"The result is painful, but we have come to an agreement in order to prevent permanent strikes on the backs of our customers," said Telekom HR Director Birgit Bohle. Verdi chief negotiator Frank Sauerland said it was a hard-fought and very good collective agreement result. "This strengthens Deutsche Telekom's position in the competition for the skilled workers of the future, and we expressly welcome that."/wdw/DP/men