MasOrange ERE Update: 650 Jobs Affected as Negotiations Resume

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MasOrange workers rejected the latest ERE proposal by a large margin, with 78.01 percent voting against the plan that would affect 650 employees. The negotiating table is due to reconvene this Wednesday to revisit the terms.

The proposal reduces the number of affected workers from an initial 795 down to 650, and the employer has continued trimming the headcount as talks progress.

Regarding voluntariness, the plan states that participation remains preferably voluntary, but if the target is not reached, the dismissals could become mandatory and the company would be able to lay off staff from any of the affected subsidiaries, according to union sources.

In this latest version MasOrange introduced a signing bonus dubbed an engagement premium for workers who sign up during the voluntary window, a move that unions say could function as coercion.

The offered premium scales are 3,000 euros for eight years or less of service, 8,000 euros for nine to twelve years, and 15,000 euros for more than twelve years.

On compensation, the plan sets severance at 33 to 45 days per year for forced dismissals and 34 to 47 days per year for voluntary ones, both capped at 24 monthly payments, with a maximum total indemnity of 300,000 euros.

The proposal maintains a severance of 20 days per year for workers over 63 years old.

The plan preserves a pre-retirement arrangement, reducing the eligible age to a window of 56 to 62 years, with tenure requirements of nine years for those aged 56 to 58 and five years for those aged 59 to 62.

Severance payments are arranged as a monthly annuity equal to 80 percent of the fixed component plus 50 percent of the variable portion, and include a special Social Security arrangement funded by the employer up to age 63, beyond which the worker covers the contributions, according to CCOO sources.

The same union estimates that just under 250 people meet these early retirement criteria.

The company also offers non-salary benefits such as two years of private health insurance and commits not to initiate another ERE before December 31, 2025.

New Meeting This Wednesday

The representatives of the workers and the company will return to the bargaining table on Wednesday for a new round of negotiations, with five CCOO members, four from UGT, and four from Fetico on the union side.

MasOrange is the company formed after the merger of Orange Spain and MásMóvil about six months ago, creating a workforce of around 8,000 employees, although only six of its subsidiaries are affected by this ERE.

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