Telefónica España agrees a wide-ranging -three-year deal with the unions
- The Company has submitted a Redundancy Plan to the employment authorities involving the loss of 6,500 jobs, which was agreed by a substantial majority with the unions; it is based on voluntary redundancies, universal application and non-discrimination.
- To show its social responsibility and forward thinking, Telefónica will meet all the costs arising from the Redundancy Plan, including funding unemployment benefits for the employees affected, so that the programme will not cost the taxpayer anything.
- The new Collective Agreement for 2011-2013 is an example of the ongoing dialogue in the Company which is a hallmark of Telefónica’s employment relations; the Agreement includes salaries reviews based on business performance.
Madrid, The management of Telefónica de España, the Telefónica Group subsidiary responsible for the fixed telephony business in Spain, has agreed a package with the unions which includes the implementation of a Redundancy Plan and a new Collective Agreement which runs until 2013. This agreement is an exercise in responsibility which will help to ensure the viability and competitiveness of the Company over the coming years.
Based on principles of volunteering, universal application and non-discrimination, and following agreement by a substantial majority with employee representatives, Telefónica España will present a Redundancy Plan to the employment authorities affecting up to 6,500 jobs. The Redundancy Plan offers attractive redundancy terms to employees who volunteer to leave the Company. To show its social responsibility and forward thinking, Telefónica will meet all the costs relating to the Redundancy Plan, including the funds required to pay unemployment benefits to the employees; as a result, the programme will not involve any cost to the government’s employment services.
The Redundancy Plan includes an individual programme of redundancies with compensation of 45 days salary for every year of service up to a maximum of three and a half years salary plus an additional amount related to length of time with the Company; a redundancy programme for current employees with at least 15 years service aged between 53 and 60 years old at the time of redundancy offering a monthly income equal to 68% of the regular base salary to the age of 61 and then 34% until 65; and a programme for people aged over 61
There is also a special programme to help employees join other Group companies.
Telefónica has also undertaken to create jobs amounting to 7% of the workforce that leaves the Company under this Redundancy Plan; over the coming years, the Company will create up to 680 new jobs. Furthermore, Telefónica undertakes to maintain employment levels in the provinces through measures ensuring regional service and continuation of delocalisation processes.
The New Collective Agreement
The new Collective Agreement for 2011-2013 is an example of the success of the ongoing employment relations dialogue within Telefónica. This Agreement provides employment stability for the Company’s employees over the coming years.
Telefónica and employee representatives have agreed a compensation model based on the Company’s performance. This new system guarantees a 1% annual salary increase for each year of the Agreement (2011, 2012 and 2013). In addition, at the end of each financial year, this salary increase may be revised based on the extent to which the Company achieves its OIBDA targets and based on the actual CPI, with the difference being applied to base salaries; furthermore, employees may receive an additional payment of up to 630 euros, if OIBDA performance exceeds 100%.
The Collective Agreement also includes an agreement to further develop the model of employment groups in the Company in order make it more appropriate for the Company’s organisational map whilst improving the employability of employees.
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