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The dispute relates to major planned job cuts following Vodafone Spain’s acquisition by Zegona last month
Spanish trade unions have accepted the workforce reduction plans offered to them by Vodafone Spain’s new owner Zegona Communications, who acquired the company back in June.
The Spanish trade union UGT had scheduled strikes for the 9th and 11th of July – with partial strikes being carried out on various days throughout the month – in protest against a redundancy plan announced by Zegona.
The new owner had originally planned to cut 1,198 jobs as part of the takeover’s restructuring, with the company citing the “strong financial and commercial deterioration” of the business,, according to local reports.
Now, following negotiations, it has instead been agreed that only 898 employees will be made redundant, 25% less than the original target.
“By a very large majority (1,821 votes in favour of the agreement versus 468 votes against) the Vodafone Spain workforce has chosen to accept the latest offer presented and, consequently, tomorrow UGT will sign the agreement that sets the conditions for the collective dismissal process presented by the company,” said UGT sources speaking to Europa Press.
Zegona spent €5 billion on the purchase of Vodafone Spain, €4.1 billion in cash and €0.9 billion in preference shares. The dismissals come just after Zegona announced its refinancing of the acquisition.
“With Zegona’s long-term financing now secured, we have a capital structure that is fit-for-purpose and we can now focus on the continued execution of our strategic plans to improve Vodafone Spain, driving growth and creating value for all stakeholders,” said CEO Eamonn O’Hare in a press release.
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