Swisscom put an offer to the unions in mid-May to extend the current collective employment agreement. The contracting partners have now agreed to extend the agreement with just a few amendments until the end of 2005. The minimum annual salary will now be CHF 45,500 (+ CHF 6,000). From the entry into force of the revised Compensation of Salary Regulation, but at the latest from 1 January 2005, maternity leave will now be 16 weeks even for employees in their first two years of service. In addition to other improvements and amendments (e.g. increased allowances for regular night-shift and Sunday work), all the remaining terms have been extended by two years. Some 16'500 people (around 14'000 full-time equivalent employees) are covered by the collective employment agreement.

Negotiations on a contract agreement with Swisscom subsidiary Cablex AG (around 560 full-time equivalent employees) are nearing completion. This is intended to take into account the special situation of the company operating in the field of network construction and maintenance.

Professional reorientation on full salary

As well as the collective employment agreement, Swisscom's unique social plan has also been extended. Since 1998, Swisscom has invested around two billion francs in the social plan. Employees affected by job cuts are accompanied by the Swisscom subsidiary PersPec Personal Perspectives AG through a process of professional reorientation and receive their full Swisscom salary for a period of 12 to 18 months. Of the 1'900 or so people who have participated in the programme to date, around 90% have found new employment. Older employees who meet certain requirements are entitled to draw on the services of Worklink AG. The company offers temporary employment up to the age of 60, after which the employees take up early retirement. The social plan also incorporates the Co-Motion start-up programme, which shows interested parties possible ways of starting their own business. The programme has already helped 200 new starters since 1999.

The extension of the collective employment agreement and the social plan is still subject to approval from the contracting partners' decision-making bodies and on the Swisscom side from the Board of Directors of Swisscom Ltd.

Berne, 29 September 2003