April 30, 2014 / 11:18 AM / in 4 years

Deutsche Telekom to raise pay of workers at IT unit

COLOGNE, April 30 (Reuters) - 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)

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