Employee Relations & Industrial Relations @ Deutsche Telekom AG. 12.04.2020 1 History of Deutsche Telekom AG. From the discovery of voice telephony to an international company. 1861 German physicist Johann Philip Reis builds the first device that is capable of electrically transmitting the human voice. He names his invention the “telephone”. 2007 to present The proportion of international revenue in net revenue is consistently above 50 percent since 2007.* *:Annual Financial Report 2010 of DTAG 1950 In West Germany, the “Deutsche Bundespost” is established. 1989 First phase of national postal and telecommunications reform creates “Deutsche Bundespost Telekom”. 2001 T-Mobile becomes the first transatlantic GSM operator with the takeover of the two U.S. mobile communications providers Voice-Stream and Powertel. 1995 The second phase of the national postal and telecommunications reform marks the transition from Deutsche Bundespost Telekom to the initially state-owned stock company Deutsche Telekom AG. 1996 “Deutsche Telekom AG” goes public in Germany in November 1996. 12.04.2020 2 International presence. The portfolio will indicate a much stronger position on the market thanks to the planned sale of TMobile USA, which should be completed by the second half of 2012. Deutsche Telekom will be either number one or number two in almost all the markets in which it has a presence. Albania Argentina Austria Belgium Brazil Bulgaria Canada China Croatia Czech Republic Denmark France Germany Greece Hong Kong Hungary Italy Japan Republic of Macedonia Mexico Montenegro Netherlands Poland Romania Russia Singapore Slovakia Spain/Portugal South Africa Switzerland Turkey United Kingdom USA Selected international subsidiaries and majority shareholdings 12.04.2020 3 Deutsche Telekom AG in numbers. North North America America* * 39.167 FTE Asia 1.093 FTE USA South America 1.956 FTE 2010 (billions/€) Germany 123.147 FTE South Africa 2.181 FTE Europe* 73.303 FTE Net Revenue EBIT Net Profit (loss) EBITDA Total Assets 62,4 5,5 1,7 17,3 127,8 Source: Personnel Report 2010/2011; Annual Financial Report 2010 * North America (incl. T-Mobile US); Europe (without Germany) 12.04.2020 4 Deutsche Telekom’s vision, aspiration and strategy. Our vision Our aspiration Deutsche Telekom – a global leader in “Connected Life and Work” The most highly regarded service company in our industry FIX Our strategy Improve performance of mobilecentric assets TRANSFORM Leverage one company in integrated assets Build networks and processes for the Gigabit Society INNOVATE Connected life across all screens Connected work with unique ICT solutions 12.04.2020 5 Board of Management Deutsche Telekom AG. René Obermann Timotheus Höttges Thomas Sattelberger Niek Jan van Damme Reinhard Clemens Dr. Manfred Balz Claudia Nemat Edward R. Kozel Chairman of the Board of Management Finance Human Resources Germany T-Systems Data Privacy, Legal Affairs and Compliance Data Privacy Data Security / IT Security Compliance Legal Affairs Group Security Coordinator Europe Technology and Innovation T-Mobile USA Corporate Development Group Strategy Group Organization Corporate Communicatio ns and Corporate Social Responsibility Brand Management Government Relations and Regulatory Law Controlling Treasury and International Financing Mergers & Acquisitions Accounting and Taxes Investor Relations Internal Audit Risk Management Real Estate Shared Services Director of Industrial Relations HR Strategy HR Management HR Development Executive Staff Vivento HR Services Telekom Telekom Training Standard Market (consumers and business customers) in Germany Sales Customer Care Marketing Group Business Security Direct Sales to Corporate Customers (T-Systems) Product Development for Corporate Customers ICT Solutions Subsidiary management for european mobile and fixed-network companies International Sales & Service International Marketing Technology IT Products and Innovation (consumers and business customers) Procurement 12.04.2020 6 DTAG‘s commitments towards its employees, customers and stakeholders. Code of Conduct Our Code of Conduct is a group-wide framework which shapes DTAG‘s internal stakeholders behavior. An update has taken place in 2011. Guiding Principles Our Guiding Principles help our employees by implementing the strategy in their ways of working and attitudes. Established in 2009 in the present form Social Charter Our Social Charter represents the social standards of Deutsche Telekom. Acting according to internationally accepted guidelines and standards, especially of the ILO, OECD and the UN Global Compact The Social Performance Report is the annual review of the Social Charter. Established in 2003 Corporate Responsibility Report Employee Relations Policy Our Corporate Responsibility Report expresses our appreciation towards our customers, employees, shareholders and the society. Deutsche Telekom reports annually about its objectives, its activities and the progress made in the relevant economic, ecological and social areas since 1996. Our Employee Relations Policy describes our global understanding of Employee Relations based on specific core elements. It comprises our promise as employer towards our employees worldwide. Implementation process has started in 2011 12.04.2020 7 The interconnection and hierarchy of DTAG’s commitments towards its employees, customers and stakeholders. Guiding Principles Global design of corporate culture Internal stakeholders (employees, managers) Code of Conduct External stakeholders (suppliers, shareholders, press, general public,…) Social Charter Behavioral framework for all employees of Deutsche Telekom Deutsche Telekom's voluntary commitment to comply with defined policies and principles Social Performance Report Guidelines / Policies Detailed description of target behavior ER Framework Polic for defining ER y Compliance by Group companies (reviewed annually) Included in terms and conditions for suppliers DT suppliers are expected to be compliant 12.04.2020 8 Deutsche Telekom‘s Social Partners. Deutsche Telekom AG Supervisory Board Deutsche Telekom AG Shareholders‘ Meeting Social Dialogue Committee of the Telecommunicat ions Sector (European level) European Works Council (EWC) (Employee representation on an European level) Legal obligation 3 of 10 employee representatives are officials of Ver.di or the DGB Ver.di: affiliated to UNI & the DGB Legal obligation Employee representatives asking questions regarding working conditions and rights at work during the Shareholders’ Meeting Social-political obligation Advising the European Commission on social-political initiatives and developments and the promotion of a social dialogue to continual improvement of working conditions of employees in this sector Employees are represented by UNI or by local affiliates of UNI Legal European obligation 32 members from 13 different European countries are represented in the EWC of DTAG 12.04.2020 9 Global business trends as challenges of the future for Employee Relations. Borderless globalization of businesses & economies Globalization of values, labor & human rights From a bipolar relationship between employer and employee organizations to a Multi-Actor System. Labor markets change to talent markets worldwide Uniformity vs. Diversity Digitization of communication and collaboration Standardization vs. Local Adaption The power is shifting increasingly away from the capital to the talent owners. Actors‘ self-concepts in the work system change The salaried workers will grow more and more into corporate citizen characteristics; the trade unions, which have so far channeled the issues and in particular in the distribution topic, must turn to new topics, and the employers will have to deal with the fact that overall the Multi-Actor System takes away a piece of their freedom of maneuver. 12.04.2020 11 Thank you for your attention. 12.04.2020 12