News

PRESS RELEASE:



April 14, 2011



Speaking at the Shareholders’ Meeting held in London, Telefónica de España CEO Guillermo Ansaldo referred to the company’s need to trim its payroll over the next three years through layoffs, which would affect some 6,500 workers (around 20% of the payroll), as well as a number of measures—including segregation and outsourcing—aimed at cutting down costs and consolidating the company’s viability. In light of these statements, UGT wishes to make a few comments.



Our organization is aware of the general economic environment in which companies have to execute their business plans. Therefore, it urges Telefónica officials to see to it that the measures they adopt not only address the interests of the company but also those of its workforce. Thus, any contingency plan should be duly justified, accounted for and well-founded if it is to be implemented.



In the face of so much turmoil in the telecommunications sector, and consequently, in Telefónica, UGT believes that no decision should be made unilaterally and that any measures taken should be at least negotiated and agreed on with the union, based on the same values that were upheld in previous processes: universality, non discrimination and willful intent.



In turn, Telefónica should consider developing a follow up plan to guarantee viability to those workers staying in the company and thus provide job security and activity in the provinces, a viability and activity plan for the various business areas, new jobs and integration of groups within Grupo Telefónica.



The company has the duty to ensure not only the conditions offered to those who are able to accept them but also the future viability of all Telefónica de España workers. Hence, UGT rejects any measure adopted by management that has not been agreed on with the unions or properly accounted for.



As stated during the failed negotiations for an extension of the existing collective agreement, UGT reiterates that it will never accept any downsizing decisions that are neither negotiated nor agreed on with the union, as has always been the case in the past, and this was made clear to the company’s management shortly after the announcements were made.



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