Avatel and employee representatives reached a tentative agreement on Wednesday regarding the company’s ongoing labor restructuring plan. The deal reduces the number of mandatory layoffs to 383, down from the initial figure proposed by the telecommunications firm.
Negotiation Terms
The agreement follows discussions between company management and union representatives. Under the terms, Avatel accepted the compensation framework proposed by the labor side. Employees affected by the restructuring will receive severance pay ranging from 33 to 45 days of salary per year worked.
The compensation package includes a cap of 24 months of salary, effectively aligning the payout with the standard for unfair dismissal under Spanish labor law. Union officials confirmed that this structure was a key point of contention during the negotiations.
Company Restructuring
The workforce reduction is part of a broader ERE, or labor regulation file, which allows companies in Spain to modify employment conditions or reduce staff during periods of economic necessity. The process began earlier this year as Avatel sought to streamline operations.
With the pre-agreement now in place, the company and labor representatives are expected to finalize the administrative details of the layoffs in the coming days. The agreement marks the conclusion of a contentious period between the firm and its staff.
Why it matters: This agreement provides clarity for employees facing job insecurity at Avatel. For the broader telecommunications sector, the deal demonstrates the role of collective bargaining in mitigating the impact of corporate restructuring efforts and managing workforce transitions during economic adjustments.