Telefónica Spain Secures New Collective Bargaining Agreement Until 2026

TL;DR

**Telefónica Spain just locked in a new labor deal until 2026, aiming for a more digital and flexible workforce.**

AI Summary

Telefónica S.A. (TEF) announced on January 3, 2024, that its Spanish subsidiary, Telefónica España, reached an agreement with major trade unions to sign the III Collective Bargaining Agreement. This agreement, effective until December 31, 2026, with a possible one-year extension, aims to foster a more digital and flexible workforce, focusing on talent retention, reskilling, and modern work-life balance. This matters to investors because it outlines the company's strategy for managing its workforce in a competitive market, potentially impacting operational efficiency and labor costs in the coming years.

Why It Matters

This agreement provides stability in labor relations for Telefónica España, which is crucial for its operational continuity and strategic transformation in a competitive telecommunications market.

Risk Assessment

Risk Level: low — The filing indicates a successful agreement, reducing immediate labor dispute risks and providing clarity on workforce management for the next few years.

Analyst Insight

Investors should view this agreement as a positive step towards operational stability and strategic workforce development for Telefónica España, potentially leading to improved long-term efficiency and competitiveness. It removes a potential source of uncertainty regarding labor relations for the next few years.

Key Players & Entities

• Telefónica S.A. (company) — registrant and parent company
• Telefónica España (company) — subsidiary entering the agreement
• Trade Unions (organization) — parties to the collective bargaining agreement
• January 2024 (date) — month of the report and agreement
• December 31, 2026 (date) — end date of the III Collective Bargaining Agreement

Forward-Looking Statements

• Telefónica España will likely see improved employee retention and skill development due to the new agreement's focus on talent and reskilling. (Telefónica España) — medium confidence, target: 2026
• Labor relations for Telefónica España will remain stable through the agreement's term, reducing the risk of significant industrial action. (Telefónica España) — high confidence, target: 2026

FAQ

Filing Documents

• form6kconvydespidos.htm (6-K) — 20KB
• image_0.jpg (GRAPHIC) — 4KB
• 0000814052-24-000002.txt ( ) — 27KB

From the Filing

Document UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 Form 6-K REPORT OF FOREIGN PRIVATE ISSUER PURSUANT TO RULE 13a-16 OR 15d-16 UNDER THE SECURITIES EXCHANGE ACT OF 1934 For the month of January, 2024 Commission File Number 001-09531 Telefnica, S.A. (Translation of registrant's name into English) Distrito Telefnica, Ronda de la Comunicacin sn, 28050 Madrid, Spain +34 91-482 87 00 (Address of principal executive offices) Indicate by check mark whether the registrant files or will file annual reports under cover of Form 20-F or Form 40-F Form 20-F X Form 40-F Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(1) Yes No X Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(7) Yes No X Telefnica, S.A. TABLE OF CONTENTS Item Sequential Page Number 1. Telefnica Telefnica informs about the agreement reached to sign the III Collective Agreement of Related Companies. 2 TELEFNICA, S.A. (Telefnica) in compliance with the Securities Market legislation, hereby communicates the following OTHER RELEVANT INFORMATION Telefnica Espaa and the most representative Trade Unions have reached an agreement to sign the III Collective Bargaining Agreement, which runs until 31 December 2026 and can be extended for a further year, with the aim of moving towards a more digital, flexible and prepared company for future challenges in a highly competitive context and massive transformation. This agreement will allow to continue focus on loyalty and attracting the best talent, invest in the development of differential workforce capabilities through reskilling, and place Telefnica Espaa at the forefront of new ways of working and work-life balance on the premises of autonomy, responsibility and contribution to results. In addition, and in parallel, it has been agreed the execution of Collective Redundancies up to a total of 3,421 employees. Employees turning 56 years or older in 2024 and with a seniority of more than 15 years can adhere. However, targets have been established that may result in limits on joining in critical areas or additional redundancies based on business reasons. The present value of the Plan's is estimated in a provision of around 1,300 million euros (before taxes), with no cash impact. Average annual savings from direct expenses are estimated around 285 million euros from year 2025. In any case, the impact on cash generation will be positive from 2024, as the capture of savings since the departure of employees is expected to take place during the first quarter of 2024. Madrid, January 3, 2024. Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized. Telefnica, S.A. Date January 3, 2024 By s Pablo de Carvajal Gonzlez Name Pablo de Carvajal Gonzlez Title Secretary to the Board of Directors

View Full Filing

View this 6-K filing on SEC EDGAR