Telefónica Deutschland and Workers’ Councils sign framework redundancy agreement – Integration moves ahead

The Management Board and the Workers’ Councils of Telefónica Deutschland have agreed on a framework redundancy agreement (“Rahmensozialplan”) valid until end of 2018. Within this framework the company can start with the implementation of the redundancy program in Q1 2015 as planned and announced last autumn. Telefonica Deutschland is vigorously pushing ahead with the integration program following the acquisition of the E Plus group in early October 2014, giving clarity for its employees on the future program.
"We are very pleased to have quickly achieved positive results through a constructive dialogue," said Markus Haas, the Management Board member responsible for HR in his capacity as Chief Operating Officer. "Reaching agreement is proof that the participants share the common vision of transforming Telefónica Deutschland into the leading digital telco.” Imke Blumenthal, the head of the Group Workers’ Council of Telefónica Deutschland, adds: “It was of utmost importance to us to ensure that all of the measures taken in the integration and transformation process would give the greatest possible weight to social priorities and at the same time ensure a high qualitative framework and best possible security for the remaining staff. In very intensive but finally successful negotiations, we succeeded in our aims.” In mid-October 2014 Telefónica Deutschland announced that, in the course of integrating E-Plus by 2018, it would actively cut 1,600 of the approximately 9,100 full-time positions in the new group using a redundancy program. This will relate especially to the elimination of duplicate functions. Approximately half of the planned downsizing will be implemented in the current year. The framework redundancy agreement (“Rahmensozialplan”) defines the balance between social and economic consequences associated with the downsizing, the way internal transfers are dealt with as well as the selection and appointment criteria in the future organisation. The merger offers a unique opportunity to be an active player in shaping the transformation of the telecommunications industry through digitalization and focusing rigorously on today’s customer needs. Consequently, the new Telefónica Deutschland is fully committed to consequent simplification and digitalization of its business model in order to create lean and efficient structures in all areas. In the downsizing process, the company strives to avoid compulsory redundancies wherever possible. Telefónica Deutschland guarantees the continuation of the different company city locations at least until the end of 2015. Beyond this date, as already announced, the main business locations in Munich, Düsseldorf and Hamburg will continue to play an important long-term role within the group.