The Ministry of Labor classified Telefónica’s decision to implement a new method of employment regulation (ERE) that will affect about 6,000 workers, or about 35% of the workforce, as “inappropriate”, pending the release of the final figure abroad, and the administration headed by Yolanda Díaz considered it “inappropriate” for a company “with benefits and publicly owned” to implement an amendment to these characteristics. Sources from the Ministry confirm that they officially expressed their dissatisfaction in a letter sent to the Sociedad Estatal de Participaciones Industriales (SEPI), which is full of these arguments. The state, through SEPI, is the major shareholder of the operator after purchasing 10% of the capital in 2024 for €2,285 million.
This position of Díaz differs from what has been maintained so far by other members of the government, as he calls for the necessary agreement between management and unions so that a consensual amendment can be implemented. Thus, Economy Minister Carlos Cuerbo stated this month that the government would monitor the process, but would avoid criticizing the amendment. “The unions say they will analyze the offer that was put on the Telefónica table,” says the minister, who recalls the “important” elements for the unions because they are “the voluntary nature of participation” in the ERE and that they have been “optimized to the greatest extent possible” in relation to the company’s latest organizational processes. “We will be, by assumption, above and waiting for this development to occur, and these circumstances, as I say,” Corbo affirmed, stressing the importance of the negotiation process “which is being taken out of the hands of the unions.”
In the same context, the Minister of Digital Transformation and Public Jobs, Oscar Lopez, indicated last week that the Telecommunications Regulatory Authority must necessarily reach an agreement with the unions. Social, always with the unions.”
With this statement, Diaz goes deeper into the line that was set two weeks ago, when he announced enhanced inspections for big tech companies shortly after Amazon announced ERE for 1,200 employees. It is common for the second vice president to speak to specific companies when she sees them engaging in unethical practices. The most typical example is Glovo, a food distribution company I’ve worked with for years Riders Independent. It is now focusing its attention on Uber Eats, the only company in the sector that continues to work with distributors at its own expense.
The social cost of adaptation
Telefónica has allocated around €1,300 million (before taxes) to cover the cost of 3,421 departures in 2024, which assumes an expenditure of around €380,000 per employee. Worse still, the new ERE could raise expenditures to $2,000 million. However, all these payments are borne by Telefónica. Although the social costs derived from those who are laid off are initially borne by the state (such as unemployment benefits and contributions to Social Security until the redundancy), this effect is offset by the so-called “telephone clause”, which was specifically legislated by the massive ERE law on the operator in 2011.
This provision obliges large companies that carry out mass layoffs of workers of advanced age (over 50 years) who enjoy significant economic benefits to reintegrate part or the total cost of unemployment benefits and contributions (special agreement with Social Security) to prevent it from falling entirely on them. state.
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