Shareholders' Letter

Full-time equivalent employees at end of year
Employer’s positioning
2008 2009 2010
Residential Customers 4,692 4,671 4,607
Small & Medium-Sized Enterprises 758 765 733
Corporate Business 2,215 2,224 2,312
Wholesale 105 92 100
Networks & IT 4,264 4,114 3,964
Swisscom Switzerland 12,034 11,866 11,716
Fastweb 3,077 3,125 3,123
Swisscom IT Services Ltd 2,438 2,677 2,858
Swisscom Participations 1,461 1,223 1,241
Swisscom Hospitality Services 281 236 263
Other 316 15 6
Other operating segments 4,496 4,151 4,368
Group Headquarters 336 337 340
Total Group 19,943 19,479 19,547
Thereof employees in Switzerland 16,104 15,995 16,064
Collective employment agreement and social plan
In December 2010, the collective employment agreement (CEA) covered some 14,200 employees
in Switzerland, or 85.9% of the total workforce. Special terms and conditions of employment apply
to management staff. The CEA sets out the key terms and conditions of employment between the
employer and employees and also contains contractual provisions governing relations between
Swisscom and the unions. The CEA offers employees flexibility and progressive employment conditions:
The working week consists of 40 hours. The social plan sets out the benefits provided by
Swisscom to employees affected by redundancy.
Responsibility for implementing the social plan lies with Worklink Ltd, a wholly owned subsidiary
of Swisscom. Worklink Ltd opens up new prospects for Swisscom employees affected by job cuts,
by providing them with advice and support in their search for new employment outside the company
or arranging temporary external or internal placements. Worklink Ltd also operates separate
outplacement schemes to assist management staff affected by redundancy. The success rate is
high; around 46% of those affected found another job within a short space of time.
Swisscom operates a wide range of programmes to ensure fair solutions for older employees who
are reaching retirement or are affected by skill change or redundancies. A retirement concept
enables partial retirement, and employees opting for early retirement (from age 58) receive financial
support in the form of a bridging pension until they reach statutory retirement age. The social
plan takes into account age and length of service. In addition, internal age management programmes
create new prospects and opportunities for older employees to continue in active
employment.
Management Commentary 34 | 35
Employees