News

Deutsche Telekom has signed an agreement with Metro PCS to merge the latter company with Telekom’s U.S. subsidiary T-Mobile USA. The deal will leave Deutsche Telekom with control of about three-fourths of the new company, which will retain the T-Mobile name.



In Germany, Deutsche Telekom employees have full participation in every aspect of the firm’s operations, but that participation is denied to its T-Mobile USA operation. Metro PCS employees are also not represented by a union.



“The rights of U.S. employees to freely join a union should be considered a priority in a merged company between T-Mobile USA and PCS. It is time Deutsche Telekom ends it discriminatory practice of allowing workers to join a union and bargain collectively in Germany but denying this to its T-Mobile USA workforce,” said Philip Jennings, General Secretary of UNI Global Union.



Since the collapse of the AT&T - T-Mobile merger, the T-Mobile USA workforce has experienced continued job loss and decline. Seven call centers were closed, cutting 3,300 employees.



John Legere, who was appointed CEO of T-Mobile USA on 19 September, will remain in that position in the merged company. Legere previously served as CEO of Global Crossing where – according to a news report in the LA Times from 2003 – he faced criticism from his employees for cutting severance packages and excluding women from the top ranks.



The proposed deal still needs to seek regulatory approval from the U.S. regulatory authorities.