Following several rounds of negotiations, Deutsche Telekom and the Verdi trade union have reached an agreement on a new collective bargaining contract. The deal, which runs until December 31, 2028, includes pay increases as well as an extension of protection against compulsory redundancies, both parties announced on Thursday. Telekom's Chief Human Resources Officer, Birgit Bohle, described the settlement as balanced.

For the Bonn-based group's employees covered by collective agreements, the so-called additional monthly salary will rise by 150 euros this year and 140 euros next year. In mid-2028, a 2.4 percent surcharge will be added to the pay scales. Furthermore, union members will receive two bonuses totaling 660 euros. 'This is a long-overdue sign of recognition for employees who are committed and thus strengthen internal democracy and collegial cohesion,' said Verdi's lead negotiator, Frank Sauerland.

Union members must still approve the collective agreement. According to Verdi, the bargaining commission is unanimously recommending acceptance. The union had demanded salary increases of 6.6 percent over a twelve-month term and the introduction of an annual membership bonus of 660 euros. The negotiations were accompanied by numerous warning strikes.

(Report by Hakan Ersen, edited by Sabine Wollrab and Ralf Bode. For inquiries, please contact our editorial office at berlin.newsroom@thomsonreuters.com (for politics and economics) or frankfurt.newsroom@thomsonreuters.com (for companies and markets).)