EMCC European Monitoring Centre on Change

Vodafone Spain

Company/Organisation:
Vodafone Spain

Geographic Location

Country: Spain

Company

Sector: Information / communication
Telecommunications
61.2 - Wireless telecommunications activities
Number Employed: 6000
Group: Vodafone

Employment Effects

Announcement Date: 01-09-2015
Planned Job Reductions min: 1059
Planned Job Reductions max: 1059
Type of Restructuring: Merger/Acquisition
Direct Dismissals: 1059

Additional Information

Telecom operator Vodafone plans to apply for a labour force adjustment affecting 1,297 (21%) employees following the merger with cable operator Ono. Of the 1,297 redundancies planned, 805 will be made at Ono. A first meeting with employee representatives to discuss the measure has already been held; negotiations will continue over the coming weeks. Trade union representatives have opposed the measure and expect the negotiations to be difficult. As of 1 September, there is no information on the timeline of the redundancies.

Update, 16-09-2015: On 15 September, the company accepted compensation payment for redundancy of 30-day wages per year of service and early retirements from the age of 58 years old as part of its labour force adjustment plan. The firm has  offered to guarantee 80% of the net regular salary during the application of the plan. There has been, however, no reduction proposed in the total number of 1,297 workers who will be affected by the redundancies. On 18 September the trade unions announced that the company has accepted to discuss voluntary departures. The company will present a new proposal on 22 September. Meanwhile, a national demonstration to protest the announced measures is scheduled for 19 September.

Update 24-09-2015: Vodafone Spain has offered trade unions to decrease the number of redundancies by 138 employees. Accordingly, the number of employees dismissed will be reduced from 1,297 to 1,159. From the 138 workers that will not be affected, 83 are from Ono and 55 from Vodafone. On the other hand, Vodafone has accepted to include voluntary redundancies, as proposed by the trade unions. However the company wants to veto some positions considered critical. Finally, it is worth noting that the company has agreed to apply the medical insurance of Ono to all the employees. Ono’s medical insurance conditions were better. 

Update 28-09-2015: Vodafone has reduced the number of job cuts proposed in its labour force adjustment plan from 1,159 to 1,059. The company is now offering a severance pay of 33 or 45 days pay per year worked up to a maximum of 24 months. Vodafone will also set up a voluntary early retirement process for employees who will be aged 55 on 30 June 2016.