- Deal to result in net pay rise for all HT employees.
- Other benefits include improved maternity leave support and holiday bonuses.
Hrvatski Telekom (HT) signed a new collective agreement with the Croatian Telecommunications Union, granting employees a collection of financial and social benefits, and implementing measures set out by national government.
The most notable aspect of the agreement ensures that workers will receive an increase in average monthly income by a total of HRK 1,000 (£116/€133) net. HT claims that those on the lowest salaries will receive the highest average income increase, in response to unprecedented levels of inflation.
The collective agreement will run until 31 December 2023, granting further rights including vacation bonuses, monthly payment packages to mothers in the second six months of maternity leave, and other financial support for employees with children.
Following the announcement, HT’s Chief Executive Kostas Nebis stated that “investing in them [employees] and building on their development is a precondition for the continuation of our growth journey while contributing to the country’s digitisation goals fulfilment”.
Hrvatski Telekom is the largest telecoms provider in Croatia, with 2.3 million mobile customers and 600,000 broadband connections, and is the latest Deutsche Telekom business to agree a new pay deal with staff, following on from Magyar Telekom in September and Telekom Deutschland in May.
The German group has in general indicated it has inflationary pressures in hand, particularly in its key markets of Germany and the USA — although has suggested it could have some exposure elsewhere in Europe to wage inflation and energy cost rises, given regulatory barriers to hedging.
Hrvatski Telekom itself has already signalled impact from rising expenses. When announcing its latest results in August, the NatCo downgraded its outlook for FY22 to guide for ‘stable’ earnings, having formerly anticipated growth. It put the revision down to deteroriation in the economy, citing cost inflation (particularly on energy) and the squeeze on household spending.
Sister NatCos Magyar Telekom and OTE have also flagged energy price increases as challenges, with the latter enacting an expense reduction programme this year (Deutsche Telekomwatch, #115).
