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Telefónica agrees to a salary increase for its staff of up to 7.8% in Spain

Date: March 29, 2024 Time: 06:42:03

And finally came the pact with the Spanish squad. Telefónica agrees to a salary increase of up to 7.8% for the year 2023, which includes both the increase corresponding to the current financial year and the compensation for the loss of purchasing power of the previous ones. This measure affects more than 16,000 employees under the agreement of the three main subsidiaries with which it operates in the country. This will mean a significant financial effort for the group of several hundred million euros in personnel costs.

The key to this rise must be found in the salary review clause that is included in that collective agreement. It was established that in 2023 calculations had to be made to compensate for the loss of purchasing power during the term. In the first two years there were hardly any problems. The differences came mainly in 2021 and 2022. The latter closed with an increase of 5.7%. Both parties have agreed that all employees receive 6.3% more. This is a measure for everyone.

To this we must add the increase in the theoretical global salary mass corresponding to the year 2023. Specifically, as explained by the CCOO union, the improvement of that 2023 is divided into two: a direct 0.8% and for the entire workforce and 0.7% for employees who take advantage of bienniums and salary level jumps (known in slang as ‘slides’) that occur every two and eight years, respectively.

For this reason, the direct increase for the entire workforce is 7.1% and up to 7.8% for those who are in these two cases of bienniums or level jumps. “The staff of Telefónica de España, Telefónica Móviles and Telefónica Soluciones have noticed their purchasing power above the cost of living in all four years,” says UGT.

Effort of hundreds of millions

The company’s wage bill will increase by 7.8% for the year 2023, in line with what the unions expected. The company did not want to provide the economic effort data to the union representatives during the meeting that took place today at the Commission for the Interpretation and Surveillance of Related Companies. What is clear is that it will mean an outlay of several hundred million euros that will be partly offset by the significant price increase that has been carried out in the convergent packages of MiMovistar since this month of January.

The Spanish case is the most paradigmatic, but it is not the only flank that the teleco must cover. In Germany, the increase in 2022 was 3.4% for all employees, along with some private benefits. The negotiation “is pending for 2023 and we expect a reasonable result,” says Vilá. In the United Kingdom, last year it rose 3%. In Brazil and Latin America, “the goal is to be in line with inflation or slightly below.”

On the other hand, the negotiating table has been set up to provide all the global business units (GBUs in their internal jargon) that are outside the general agreement of the three large subsidiaries with a group agreement that unifies the working conditions of all the companies that are included in this denomination. Among them is the Telefónica SA holding, the digital division or the R&D division.

From the unions it is claimed that in this group, which represents several thousand employees in Spain, there is a salary increase similar to the one that is being given for the 16,000 of the agreement of the three main subsidiaries. The negotiation between the parties is still ongoing. This increase must be addressed by the operator from the month of March.

* This website provides news content gathered from various internet sources. It is crucial to understand that we are not responsible for the accuracy, completeness, or reliability of the information presented Read More

Puck Henry
Puck Henry
Puck Henry is an editor for ePrimefeed covering all types of news.
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