This Thursday, Telefonica and the unions reached a historic agreement under which thousands of the operator’s employees will leave various subsidiaries whose profitability has significantly declined due to instability in the telecommunications sector caused by aggressive price war policies.

Within a few weeks, telecommunications company and the unions held several meetings with the desire to reach an agreement that met the expectations of both parties. Finally, ahead of time, both the workers’ representatives and the company achieved a handshake. These are some of the keys to the ERE, which will be launched in the coming weeks.

How many people is it designed for?

Finally, ERE will be designed for 3411 employees who work for Telefonica Spain. At first, the operator wanted to increase the number of employees to 5,100 people. However, the unions categorically refused, and the company gradually reduced staff. The parties held various meetings, and the operator initially stated that this was the maximum figure, making it clear that he was ready to reduce these deadlines.

Which subsidiaries is ERE intended for?

The staff adjustment will affect the operator’s three main subsidiaries in Spain (Telefonica Móviles, Telefonica Soluciones and Telefonica España), employing about 16,000 people out of the 21,000 employees working in the country.

How are layoffs distributed?

2958 in Telefonica España, 397 in Telefonica Móviles and 56 in Telefonica Soluciones

What are the conditions?

ERE is intended for the oldest employees of the company. However, unions have acknowledged that forced layoffs are occurring in surplus areas.

Workers born in 1968 will receive 68% of the standard salary until age 63 and 38% until age 65. Employees born in 1967, 1966, 1965 or 1964 will receive compensation in the amount of 62% of the standard salary until age 63. and 34% under 65 years of age. Finally, employees born in 1963 and older will receive 52% of the standard salary until age 63 and 34% until age 65.

In addition, the unions and Telefonica agreed to increase the voluntary bonus under this section to 10,000.

When does ERE start?

ERE will be almost immediate. The registration period opens on January 9th and closes on February 8th. Telefónica will respond to these requests on 14 February.

Departures will begin on February 29, but some of them (depending on areas) may be delayed until March 31, 2025.

How much will the operator save?

There are no official figures. Industry sources suggest Telefónica could save around €400 million in the long term, in line with previous plans to stimulate exits.

Why ERE?

The newspaper explained that they were caused by different reasons. Sources comment that in the latest ERE, since it is a contract termination rather than a suspension as in the case of PSI, workers lose – in addition to employment – contributions to the pension plan, as well as the health of the company. Insurance Company.

There are also tax savings. Compensation is subject to personal income tax, since there is no termination of the contract. That is, ERE is more financially beneficial for employees.