New emplyment cuts affect the economy in Spain

In the current decelerated economy of Spain, many companies – especially in industry and banking – have outlined strategies that allow to thin the workforce that includes the payroll of each one of them, as a formula to save costs since the end of 2018. A strategy that has pushed companies such as Vodafone, Caixabank, Banco Santander, Vestas, Alcoa, among others to fire from work between 300,000 and 550,000 workers a year.

For this first quarter of the year, the Employment Regulation Records (ERE) have increased, calculating their rise to 38,611, which is equivalent to 42% more than estimated for the same period of the previous year.

Telefónica reports 4,500 resignations and 300 forced retirements. This company, chaired by José María Álvarez Pallete, signed with Unions a total of 4,500 departures las Friday. Although the economic crisis in Spain has severely affected the industries, this company was one of the last to announce the job cuts, prompting it to make a provision to execute said program valued at 1,600 million, a figure that would fit for an estimate of only 2,800 adscriptions.

In the case of Banco Santander and Caixabank, there are 5,246 affected. As of last July, in these banking entities the regulation of jobs that is scheduled to close in November was put in place, so that employees who wish to benefit from the extinction plan do so. Those affected by Caixabank are 2,023 and Banco Santander 3,223.

The Dia strores chain has affected 1,814 positions. For this same month he announced the launch of a collective dismissal process for “The Tree” that affects the Max Discount stores and a maximum of 210 employees. Dia Supermarkets DIA (Distribuidora Internacional de Alimentos, S.A in Spanish) and the wholesale unions such as Fetico and UGT, have closed an agreement for the ERE leaving out 1,604 workers.

K.Villarroel

Source: abc