Telefonica raises wages for Spanish workers by 7.8% in 2023

(Reuters) – Spanish telecoms operator Telefonica has agreed with major unions to raise the wages of nearly 13,000 workers in Spain by 7.8% in 2023 to offset the effects of high inflation, the union said on Wednesday. company.

The wage increase includes 6.3% to offset the impact of inflation between 2019 and 2022 and 1.5% in anticipation of consumer price hikes in 2023, Telefonica said in a document sent to employees. The salary increase took effect on January 1.

In addition, workers will receive a one-time payment of 300 euros in October. The UGT union confirmed the agreement in a press release. Telefonica employs approximately 16,000 people in Spain. Another negotiation will begin later this year for the remaining workers whose contracts are not covered by the agreement.

Spain’s inflation rate in 2021 and 2022, at 6.5% and 5.7% respectively, was the highest since the early 1990s, prompting unions to pressure sometimes reluctant employers for wage increases, leading to strikes and demonstrations.

In many sectors, such as banking and retail, companies have granted significant wage increases.

(Reporting by Inti Landauro; Editing by Mark Potter)