Deutsche Telekom staff walk out

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More than 10,000 Deutsche Telekom employees have gone on strike, in the firm's first major industrial dispute since it was privatised.

Staff are angry at cost-cutting plans to move many of them from its fixed-line business, T-Com, into lower-paying subsidiaries.

The services union Verdi has targeted call centres, technical support and cable installation for the strike.

Deutsche Telekom says it does not expect major delays or disruptions.

"We have had to deal with short walkouts in the past couple of weeks, so we know what to expect," a company spokesman said.

Deutsche Telekom has 80,000 staff at T-Com, whereas Telefonica in Spain has about 28,000 employees in its equivalent fixed-line business.

Verdi says it is determined to strike until the company improves an offer that includes increasing weekly working hours to 38 from 34 and a gradual pay cut of 9%.

On Thursday, Deutsche Telekom reported a 58% fall in three-month profits, after more than half a million customers left its fixed-line business to join cheaper rivals.