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Telefonica Spain offers voluntary retirement in modernisation efforts

José María Álvarez-Pallete López, chairman & CEO, Telefónica S.A.

The Spanish arm of Telefonica has announced a deal with major trade unions that will offer voluntary retirement to employees.

The collective bargaining agreement was agreed between Telefonica Spain and trade unions UGT and CCOO and will be valid through to December 31 2021 with the possibility of a one year extension. The telco confirmed that this would encompass Telefonica de Espana, Telefonica Moviles, and Telefonica Soluciones – all three of its Spanish businesses.

In addition to the offer of voluntary retirement, the deal promises an annual salary increase of 1.5% across the board, an annual bonus of €300 and the introduction of a new training programme designed to “evolve towards a more digital company”. 

The company said it anticipates more than 6,000 employees will take part in these reskilling programmes, while Spanish paper Expansion reports that up to 4,500 are expected to apply for the voluntary retirement plan. 

Any workers over the age of 53 who have been with the company for at least 15 years are entitled to receive 68% of their current salary until the age of 65 along with their full social security and health insurance. 

Telefonica has also pledged to hire two new workers for every retiree, with one of those being under the age of 35.