German Union Demands 5.5% Wage Rise for Deutsche Telekom Workers

    German labor union Verdi said Friday it is demanding higher pay, and a ban on forced layoffs from Deutsche Telekom AG (DTE.XE).

    The union wants a 5.5% wage increase, as well as a pledge not to forcibly layoff workers, after previous agreements on layoffs expired at the end of 2013, Verdi said in a statement.

    The negotiations are double-tracked, one for 72,000 Telekom group employees, beginning Feb. 13. The other, beginning Mar. 6, is for 25,000 workers, primarily at T-Systems, the group's unit for information technology and large-customer operations.

    The union is especially concerned about layoffs at T-Systems, which is being restructured. It isn't clear how many jobs will be affected, it added.

    Federal Verdi labor chief Lothar Schroeder said forced layoffs will be "central" to the negotiations.

    A Telekom spokesman described the demands as "hardly surprising," speaking to The Wall Street Journal.

    The 5.5% pay demand is one percentage point lower than what the union demanded in 2012, reflecting a lower inflation rate, Mr. Schroeder said in the statement. The union also wants to limit the wage agreement to 12 months.

    Write to Archibald Preuschat at