Vodafone caught in German clash

VODAFONE faces boardroom upheaval in Germany as two unions battle for the right to represent the workforce at the mobile phone giant's D2 operation. Klaus Zwickel, controversial head of Germany's powerful IG Metall union and a key member of the supervisory board at Vodafone D2, faces a challenge to his position from Ver.di, now Germany's biggest union.

Ver.di has a team of about 70 working on ousting IG Metall as the official union at D2, which was created from Vodafone's £105bn takeover of Mannesmann last year.

Ver.di represents communications workers, while Metall is the engineering union. Vodafone has disposed of all of Mannesmann's engineering operations. Ver.di is lobbying workers at the firm and is preparing to take the case to a special inter-union tribunal.

Zwickel, president of the supervisory board, has come in for heavy criticism for approving the hostile takeover by Vodafone and a £19m bonus to Mannesmann chief executive Klaus Esser and other executives for work on the deal. He and Esser were investigated by police after allegations that the bonuses were bribes by Vodafone to get the takeover accepted.

The union feud comes in the midst of a restructuring operation by Vodafone, which is attempting to cut costs. Metall denied friction with Ver.di. 'We have a deal with Ver.di dating back a year that says D2 is ours,' a spokesman said. 'It is true there is talk of employment changes at D2, but no job losses on the scale that would require consultation between unions and management under EU law. More workers will face changes to their conditions.'