Union rejects Deutsche Telekom pay offer

FRANKFURT (Reuters) - Deutsche Telekom's <DTEGn.DE> proposed pay deal for 55,000 of its workers in Germany was rejected as inadequate by the Verdi services union on Thursday.

Earlier in the day, the telecoms group had offered salaried staff a 2 percent raise on July 1 with a further pay increase of 1.7 percent on March 1, 2019.

"With this offer of a significant raise we are underlining our willingness to reach an agreement at the negotiating table," head of personnel Simone Thiaener said in a statement.

Verdi had stepped up pressure on management to put an offer on the table at a third round of pay talks in Berlin, extending a series of walkouts in which 10,000 staff have taken part.

The labour union, which is seeking a 5.5 percent pay rise over 12 months, said the increase was too little and the duration of the deal too long.

"Bearing in mind the positive business development at Deutsche Telekom, this offer must be significantly improved," said Verdi negotiator Frank Sauerland.

(Reporting by Douglas Busvine; Editing by Emma Thomasson and David Goodman)