THE HAGUE -- KPN and the trades unions have failed to reach agreement on a new collective labour agreement. Trades union negotiators refused to accept the pension proposals. KPN's final offer comprised a structural salary increase totalling 3% over 27 months, changes to pensions, as well as a 2% employer's contribution to an employment lifetime saving scheme. KPN also wants the collective labour agreement to include measures to stimulate workforce mobility ('mobility-CAO'), in other words encourage employees to actively look for another job. The trade unions will discuss the final offer with their membership.

An important part of the final offer is a range of retirement options, giving employees choices as to when to stop working. Employees will receive a 2% contribution to the employment lifetime saving scheme. Whilst KPN will also increase the retirement age to 65, it will also make improvements to pension provisions, meaning that employees will still be able to take early retirement. KPN has consistently argued that the retirement age needs to be increased to 65. KPN was prepared to return the savings that this would bring in full to the workforce. The trades unions have dug in on their demands for collective pension reparations.

KPN expects the 'mobility-CAO' to be instrumental in limiting the number of redundancies necessary in the coming years. In view of the considerable reduction in workforce that will occur at KPN over the coming years, as well as the fundamental technological changes taking place in the sector, employee mobility is of the greatest importance. Additional attractive bonuses will be made available for those who succeed in finding new employment quickly.

KPN Telecom NV