Telephone: 6.500 redundancies in three years

Telefonica, the Spanish telecommunications giant, announced today that it has reached an agreement with the unions that provides for a cut of up to 6500 jobs within three years, specifying that it will assume "the full cost" of the redundancy plan. The operator said that this move "guarantees the company's visibility and competitiveness in the coming years".
Negotiations began two months ago and an agreement was finally reached, approved by almost 80% of the social partners and which will be presented to the labor authorities for their approval. Telefonica will have to link wages to productivity, becoming the second Spanish company, after Iberdorola, to take this measure.
The government has mandated that the telecommunications company bear all costs, including the funds needed to cover workers' unemployment benefits. The Spanish company undertakes to create 680 new jobs, corresponding to 7% of the company's 30.000 employees. The 6.500 redundancies correspond to 20% of Telefonica's wage bill in Spain.
In 2010, the Iberian giant recorded profits of 10,7 billion euros, with a net profit up 30,8%. It is the second telecom operator in Europe, after Vodafone, and at the end of March it had 285,6 million customers worldwide, around 6,1% more than a year ago. This was the main reason for the unions' initial disapproval. Even Zapatero's government said it was surprised by the redundancy plan, which comes just as Spain is experiencing a very serious economic crisis with an unemployment rate that now exceeds 21%.