The Job Security Of The Workers Union

1964 Words8 Pages
One of the primary challenges the company was faced with heading into 2007 was the need to cut costs through dealing with an overstaffed, overpaid workforce reaping the benefits of a history of weak executive leadership. According to a study at the time, “overall staff costs at DT were running at approximately 25% of sales,” nearly ten points higher than the nearest competitor. (pg 2) While seemingly effortless from a third party perspective, the influence of the workers union presented further difficulty for Obermann and his predecessors. Past executives had failed in preserving resources since “the unions had successfully protected their members’ job security ever since DT’s privatization in 1996.”With such a high amount of resources…show more content…
Armed with a firm understanding of the company’s finances, René Obermann initially looked after the immediate financial safety of the company, secondly focusing on the service being delivered through such efficiency. With all of this in mind and armed with the additional expertise necessary to push the struggling company back into the competitive environment, hopes for an immediate turnaround were quickly dashed through an email arriving on March 9, 2007 from a technician at Deutsche Telekom. As mentioned earlier, the letter targeted the executives and board members of the company directly, and called for immediate change within the organization. In order to fully examine the impact of the letter,the reactions of the stakeholders in this situation are vital as they play such an important part in the future success of the organization. First, looking at the main source of revenue for the company and a large reason for a recent downward trend at the company’s bottom line, the customers. As a customer, seeing a company with internal strife is never a good signal of performance. The fact that this conflict has extended into the public eye is even more worrisome to a consumer who places value on the ability of a company to properly maintain order through periods of financial uncertainty. A lack of this rigid structure grows the perception of a company incapable of surviving
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