"Life is for sharing" in Germany but it's "lean and mean" in the United States

 Deutsche Telekom has released its 2008-2009 Human Resources Report, revealing a gaping chasm between how the company treats workers in Germany and how it treats workers in the United States.

Workers in Germany, who enjoy union representation through ver.di, won a pay increase of 5.5% through collective bargaining, according to the company's report. This increase was retroactive to June 1, 2008. Deutsche Telekom said that “in a tough competitive environment, this agreement gives [the company] a high level of planning security over the next two years while also allowing employees to participate in the company's success". Jobs for German workers are also contractually protected until at least the end of 2010 against outsourcing. Moreover, outsourced work was reduced by the equivalent of 6,400 jobs.

In the United States, labor laws make it virtually impossible for many workers to join a union, and so Deutsche Telekom's T-Mobile workers in the US have no union representation and are not allowed to bargain collectively for their working conditions. In January 2009, T-Mobile USA's CEO sent an e-mail to staff informing them that there would be no annual increase for them, effective January 1, 2009. He urged them to “stay scrappy” and to be "lean and mean while growing the business" during the current economic climate. T-Mobile USA workers also face more and more of their work being outsourced to the Philippines, Canada, and Colombia.

The unfairness of this treatment of T-Mobile USA workers seems even more unacceptable given that T-Mobile USA made profit and revenue increases of 6-7% in 2008 and the USA business brings in 25% of the company's total revenue. Moreover, T-Mobile USA employees generated 43% more revenue per employee and cost the company 30% less in personnel costs per employee than in Germany.

 

T-MOBILE USA DEUTSCHE TELEKOM GERMANY
"Stay Scrappy" Participation in corporate success*
Work 40 hour week Work 38 hour week*
No annual increase as of January 1, 2009 Guaranteed 5.5% annual increase retroactive to June 1, 2008*
Earned the company 43% more per employee than in Germany in 2008*
($142,000/yr per employee)
Earned the company $99,000/yr per employee in 2008*
Cost the company 30% less in personnel costs than in Germany in 2008*
($62,000/yr per employee)
Cost the company $88,000/yr per employee in personnel costs in 2008*
No protections against outsourcing; increased outsourced work to Canada, the Philippines, and Colombia in 2008 Jobs guaranteed against outsourcing until at least 2010; reduced outsourced work by 6,400 jobs in 2008*
No contract and no job security Legally binding contract and job security*
No union representation Union representation (ver.di)*
* Source: Deutsche Telekom 2008-2009 Human Resources Report
 
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