OTE Cuts Pay

Greek operator reduces salary grades by around 11% in face of austerity program

September 26, 2011

1 Min Read

ATHENS -- Hellenic Telecommunications Organization SA (ASE:HTO, OTC MARKET:HLTOY) announces that yesterday, following lengthy negotiations of several months, it reached an agreement with the Unions on the framework of a three-year Collective Labour Agreement to be signed after approval by the competent bodies of the parties involved.

The basic terms include the following:

  • Ensuring employment for OTE’s personnel. The company will not introduce work rotation or proceed with dismissals on financial or operational grounds, for the duration of the Collective Labour Agreement to be signed.

  • Reduction of personnel costs. Salary grades will be reduced by approximately 11% for a period of three years and then will revert to current levels in 1.1.2015.

  • Reduction of weekly working hours. Full working time will be adjusted to 35 hours per week and will increase to the current 40 hours per week from 1.1.2015.

    The Chairman and CEO of OTE, Mr Michael Tsamaz commented: “In this turbulent period, we succeeded in reaching an agreement on measures that can improve the company’s competitiveness, whilst ensuring its uninterrupted operation. We have reached common ground with the Union representatives to reduce payroll costs without resorting to dismissals. This agreement is part of our effort to transform OTE into a highly competitive and efficient company and ensure future investments in telecommunications infrastructure in order to offer state of the art telecommunications services to contribute to the technological advancement of the country and to increase shareholder value.”

    OTE S.A.

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