COLOGNE, April 30 Deutsche Telekom has agreed to raise the pay for about 20,000 employees at its IT unit T-Systems by a total of 3.5 percent in two steps, Telekom and labour union Verdi said on Wednesday.
The deal runs for two years and falls short of union demands for a 5.5 percent increase over 12 months.
Telekom also agreed to give workers protection from job cuts for two years, but only from the end of 2015, when a planned headcount reduction of 4,900 German workers has been completed.
Earlier this month, Telekom reached a two-year wage deal for about 72,000 of German workers at the group, avoiding drawn-out negotiations which could have hampered the roll-out of its high-speed fibre optic broadband network. (Reporting by Nikola Rotscheroth; Writing by Maria Sheahan; Editing by Mark Heinrich)