Telefónica opens redundancy offer

Following months of negotiation, Telefónica will open the registration period for the Employment Regulation File (ERE) today, that will affect the redundancy of up to a total of 3,421 workers.

According to the calendar of the agreement for the collective dismissal that management and unions signed on January 3, the deadline to sign up will be open until February 8, and the company will answer the requests on February 14.

The majority of departures will occur on February 29, although the ERE will be open until March 31, 2025. Workers from the related companies Telefónica de España, Móviles y Soluciones who turn 56 or older during 2024 with 15 years of service may join the file.

However, the company has reserved adhesion limits in critical areas or additional separations in areas with greater functional surplus for business reasons.

Those born in 1968 will receive 68% of the regulatory salary until age 63 and 38% until age 65. Workers born in 1967, 1966, 1965 or 1964 will receive 62% of the regulatory salary until age 63 and a 34% up to 65, and the voluntary premium is increased to 10,000 euro for this section.

People born in 1963 or earlier will receive 52% of the regulatory salary until age 63 and 34% until age 65, with the same voluntary bonus.

In the chapter on complements, the ERE includes reversibility of income (in the event of death, the legal heirs will receive the pending income), payment of the employee’s social security discount during unemployment, and group insurance up to age 63 (and up to 65 years for survival).

The 3,421 affected by the ERE represent 21% of the nearly 16,000 employees of the three affected companies of Telefónica Spain. The final number of those included in the ERE that management and unions have agreed on is 33% less than the 5,124 departures that the company initially proposed.

To face the ERE, the teleco has planned a provision of about 1,3 billion euro before taxes. The company has said that this money will not have an impact on cash and calculates that the file will mean average annual savings in direct expenses of 285 million euro from 2025, but with positive cash generation and savings capture already from 2024, since the departure of employees will occur in this first quarter of the year.

The post Telefónica opens redundancy offer appeared first on Spain Today – Breaking Spanish News, Sport, and Information.