Incentive early retirement plans, the new workforce reduction method implemented by Telefnica
Grupo Telefnica is preparing to launch its early retirement incentive plan for its workers in the areas of total solutions and wholesale network services. A union initiative which is not new, but which is part of the program that the company launched during the COVID-19 crisis and which, due to the demands of the pandemic, could not apply to all units . Now, in order to comply with health protocols and recommendations, she has chosen to do so in stages.
The proposal is linked to recent editions of Telefnica’s Individual Suspension Program (PSI), and it is expected that more than a hundred employees could apply to accept the conditions envisaged in the early retirement plan promoted by Telefnica. Likewise, the measure is linked to the strategic plan for the simplification and optimization of resources initiated by the company.
Conditions of the early retirement plan
The pre-retirement plan promoted by the Telefnica group offers remuneration equivalent to 60% of the gross annual salary at the time of suspension from work for the corresponding years up to the legal retirement age. In addition, the company undertakes to bear the costs of the compromise with social security, so that the commercial decision does not affect the State public funds. Likewise, Telefnica will maintain medical insurance, pension plan contributions and the company’s collective risk policy for employees who benefit from the program.
With these new initiatives, Telefnica is able to achieve some of its goals for the new year, as well as meet the needs of the group, such as the reduction and simplification of the structures of the wholesale network services area. In addition, the company intends to manage the incentive leave plan in a phased manner within the company, thereby complying with the safety protocols required due to the COVID-19 pandemic.
Inspired by the individual suspension program
In 2015, Telefnica already launched another individual suspension program, which welcomed 6,500 workers. As a result, forced retirements were compensated by 45 days of salary per year worked, excluding variables. Today, and for more than a year, the company has been working on a non-traumatic job reduction plan inspired by this latest individual suspension program. The average annual cost savings of this program are estimated at € 220 million this year.