Telefónica proposes its first ERE in ten years with thousands of workers potentially affected
Telefónica has proposed an Employment Regulation File (ERE) to the unions to reduce the size of its workforce in Spain. A collective dismissal that could potentially affect thousands of workers, as confirmed this afternoon by union sources consulted by 20minutes. If finalized, the ERE would be the first that the company applies in 10 years, when the last exit file was closed.. The process lasted three years and was closed with the departure of 6,830 'teleco' workers.
The number of employees who would be affected by the collective dismissal is still unknown, although initially information has emerged that pointed to 2,500 workers.. However, this point has been denied by union sources who indicate that the figure will not be known until the negotiating tables are established.
What is known is that the ERE will affect the workers of three subsidiaries of the company: Telefónica España, Telefónica Móviles and Telefónica Soluciones Informáticas. These three 'legal' entities together have 16,000 employees and the regulatory files must be negotiated in each of them. Until the three negotiating tables are established, an official number of affected workers will not be known.
Telefónica officially informed the unions last Thursday that it was preparing a workforce adjustment. However, it was not until this Monday that it emerged that the route chosen will be the ERE.. The union centers are negotiating with the company the new collective agreement that affects the three subsidiaries, a process that will conclude at the end of the year.
The unions are now waiting to know the details of the employment regulation files before making evaluations.. Of course, both UGT and CC OO – the centers with the greatest weight in the 'teleco' – claim that in the event of an exit plan there must be equal opportunities and the link of those affected with retirement must be taken into account.
Telefónica workers are accustomed to the workforce reduction processes that have been happening at a great pace in the last decade. The last departure of workers occurred in 2021 through a voluntary resignation plan to which a total of 2,982 employees joined. Previously, between 2016 and 2018, the company had already implemented similar plans through which the departure of 6,300 employees was agreed, to which another 2,640 were added in 2019.. In total, the company has laid off 11,922 workers since 2016. To them, we should add the 6,830 workers who left the company in the ERE that ended in 2013.
The main difference between the voluntary withdrawal programs that have been applied until now and an ERE is that the former are more guaranteeing for those affected.. Individual suspension plans allow the worker to maintain the employment relationship with the company until retirement, although they entail a considerable reduction in salary.. On the other hand, the ERE implies the end of the employment contract, with which the worker receives compensation and enters the unemployment benefits system.
Troubled times for the company
Telefónica, the eighth largest company based in Spain by capitalization, is going through turbulent times. The turbulence began in September, when Saudi Telecom, a telecommunications company sponsored by the Saudi State, announced its surprise entry into Telefónica after acquiring a 4.9% share package and another 5% share through financial derivatives.
The Spanish telecom company is considered by the Government as a strategic company due to the sector in which it carries out its activity and its involvement in the armed forces, where it totals hundreds of millions of euros in tenders.. That is one of the reasons why the Executive is considering re-entering the company's shareholding through SEPI 26 years after its privatization.