Employees

Employees

At 31 December 2010, TDC had 10,423 full-time employee equivalents. The following table shows TDC's full-time employee equivalents as of 31 December 2010, 2009 and 2008, broken down by business line.

TDC has implemented a number of general Danish redundancy programmes in recent years. As a consequence of these programmes, in 2010, TDC reduced its domestic workforce by 691 employees (headcount).

TDC places considerable importance on employee training, and employee satisfaction is monitored in a quarterly employee survey, TDC Kompasset (The TDC Compass). The employee satisfaction survey engages TDC's employees in dialogue to identify ways to improve work environment processes and goal setting. According to the internal TDC survey (covering the entire workforce), employee satisfaction increased from 73/100 in 2008 to 76/100 in 2009 and 77/100 in 2010.

FTEs (EoY) 2010 2009 2008 Change in % 2010 vs. 2009 Change in % 2009 vs. 2008
Consumer¹ 2,037 2,160 2,212 (5.7) (2.4)
TDC Business 1,476 1,528 1,620 (3.4) (5.7)
TDC Nordic 1,388 1,437 1,619 (3.4) (11.2)
   - of which in Denmark 168 153 155 9.8 (1.3)
Operations & Wholesale² 3,868 4,409 4,406 (12.3) 0.1
YouSee³ 1,231 1,265 1,174 (2.7) 7.8
Others 423 478 741 (11.5) (35.5)
   - of which in Denmark 420 471 726 (10.8) (35.1)
TDC Group 10,423 11,277 11,772 (7.6) (4.2)
TDC Group, domestic 9,200 9,986 10,293 (7.9) (3.0)
  1. 1 Includes Fullrate as of Q2 2009 and M1 as of Q1 2010.
  2. 2 Includes the fibre network purchased from DONG Energy as of Q4 2009 and Unotel as of Q1 2010.
  3. 3 Includes A+ as of Q2 2009 and Nordit as of Q2 2010.

Labour relations

TDC estimates that, at 31 December 2010, more than 70% of its employees were union members. Almost all employees except for employees on senior management contracts are covered by collective labour agreements.

Collective labour agreements are in place with the telecommunications department of the Danish Metal Workers Union (Dansk Metal), the Association of Managers and Employees in Special Positions of Trust in TDC (Lederforeningen i TDC, LTD), the Danish Confederation of Professional Associations (Akademikernes Centralorganisation) and a few other unions. TDC's agreement with the Association of Managers and Employees in Special Positions of Trust in TDC does not include the right to initiate strikes and other union measures.

TDC has entered into collective truce agreements with the telecommunications department of the Danish Metal Workers Union, the Association of Managers and Employees in Special Positions of Trust in TDC, and the Danish Confederation of Professional Associations (collectively, the 'Truce Agreement Unions'). In accordance with these truce agreements TDC has agreed to follow certain procedural guidelines when implementing workforce reductions, including providing redundant employees with training that would prepare them for outplacement or reassignment within TDC under certain circumstances. Pursuant to the truce agreement with the Danish Metal Workers Union, the parties have agreed to enter into dialogue within 24 hours of any imminent conflict in order to prevent industrial action. The truce agreements will expire at the end of 2011, however they may be terminated by TDC or the unions subject to three months' notice in the event that the assumptions behind the agreements lapse or change.

TDC has also entered into collective agreements with the truce agreement unions regarding terms and conditions that will serve to encourage voluntary resignations. These agreements may be terminated by either party, subject to two months' notice.

In TDC Nordic, a mixture of collective agreements and individual contracts are used.

Pension etc.

TDC's employees consists of (i) former civil servants covered by a defined benefit plan, (ii) employees with pension rights in TDC Pensionskasse (which are defined benefit plans) and (iii) employees with ordinary pension plans (which are defined contribution plans).

The pension terms of employees who are former civil servants are similar to those that apply to government civil servants under the Danish Civil Servants Plan. When transferred to TDC, they retained their right to acivil servant pension in accordance with the Danish Act on Pension for Civil Servants. In 1994, TDC made an agreement with the Danish State, in accordance with which the Danish State, in return for a non-recurrentpayment from TDC, is to undertake the payment of civil servant pensions to the former government civil servants leaving TDC with no further obligations to finance these pension payments. However, the agreement between the Danish State and TDC can be renegotiated if the premises on which it was based change significantly. Employees who are former civil servants have retained their right to receive tied-over allowance, which is a special severance payment, in the amount of three years' salary in the event of dismissal due to insufficient workload. TDC has an obligation to fund such tied-over allowance.

The pension terms of the members of TDC Pensionskasse are similar to those provided by the Danish Civil Servants Plan. In the event of dismissal due to insufficient workload, at 31 December 2010, 93 of these employees had a right to receive severance pay in the form of tied-over allowance equal to three years' salary and 80 of these employees had a right to receive stand-off payments consisting of three months' full salary and two-thirds of the full monthly salary for four years and nine months. TDC has the obligation to fund contributions to the civil servants pension fund as well as tied-over allowance and stand-off payments.

The pension terms of the remainder of employees in Denmark are defined contribution plans without further obligations for TDC except to finance agreed contributions to the employees pension insurance providers.

TDC has also undertaken an obligation to finance add-on pension contributions to the pension insurance provider concerned for the benefit of the former civil servants and members of TDC Pensionskasse. This expansion to the civil servants pension makes up for an agreed salary freeze used as the basis for calculating pensions for the civil servants.

The table shows the number of employees (headcount) participating in each of TDC's pension plans at 31 December 2010 [1].

The Nordic activities run various pension schemes that are also mainly in the form of defined contribution plans.

Contract types/collective agreements/pension Ordinary
pension plans
TDC Pension funds members Former
government
civil servants
Total
AC 1,079 5 2 1,086
Dansk Metal 3,331 1,714 205 5,250
LTD 861 342 66 1,269
Other or non-collective agreement 303 8 2 313
TDC Group 5,574 2,069 275 7,918

  1. The figures cover TDC A/S, YouSee A/S and NetDesign and represent headcounts and not full-time employee equivalents. The following employees are included: permanent employees and temporary employees except employees on leave, expatriates and employees included in a redundancy plan.
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