Investor News
Magyar Telekom reaches agreement with the trade unions
Budapest, December 14, 2018 10:00
Magyar Telekom (Reuters: MTEL.BU and Bloomberg: MTELEKOM HB), the
leading Hungarian telecommunications service provider, hereby announces that it
has reached an agreement with the trade unions on a headcount reduction and
wage increases at Magyar Telekom Plc in 2019.
The Company agreed
with the trade unions on the termination of the employment relationship of ca.
400 employees at the parent company, with the majority of the terminations expected
to be carried out during the first quarter of 2019. Severance expenses related
to the headcount reduction are estimated to be approximately HUF 4.3 billion,
the majority of which will also be accounted for in the first quarter of 2019.
In order to maintain wages at competitive levels, pursuant to the agreement with the trade unions, from
April 1, 2019, non-managerial employee salaries at
the Companywill rise by an average of 6%.
The above measures, coupled with other agreed
modifications to the employee remuneration structure, are expected to result in
4% savings for 2019 in parent company employee related expenses - excluding
severance expenses - compared to 2018.
This
investor news may contain forward-looking statements. Statements that are not
historical facts, including statements about our beliefs and expectations, are
forward-looking statements. These statements are based on current plans,
estimates and projections, and therefore should not have undue reliance placed
upon them. Forward-looking statements speak only as of the date they are made,
and we undertake no obligation to update publicly any of them in light of new
information or future events.
Forward-looking
statements involve inherent risks and uncertainties. We caution you that a
number of important factors could cause actual results to differ materially
from those contained in any forward-looking statement. Such factors are
described in, among other things, our Annual Reports for the year ended
December 31, 2017 available on our website at https://www.telekom.hu.