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Telekom Austria decides on pay rises

Different pay rises for former civil servants at Telekom Austria

By Maddy French

Workers at Telekom Austria will receive different pay rises depending on whether they are former public sector employees or regular staff, it was announced on Tuesday.

The telecoms company, which is part owned by the Austrian state and private company American Movil, has 51% of it's employees on civil service contracts.

On Tuesday Telekom Austria announced that these workers will see a pay rise of 1.55% in 2014, whilst Austrian staff on other contacts will see a rise of 2.4%. This goes against the wishes of the works council who had wanted to see all workers getting the same deal.

Further to collective agreements, employees who received civil service contracts are also entitled to a 5% pay rise every two years and terms in their contracts means they are well protected from dismissal.

Employee costs in Austria for the telecoms company reached 680 million Euros in 2012. Although they have seen a 34% reduction in worker numbers, this figure is similar to personnel costs seen a decade earlier.

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