Just over 400 workers have voluntarily accepted Masorange’s proposed labor regulation dossier, the deadline for voluntary acceptance of which expires at the end of this Wednesday, November 6, negotiating sources said. This is around 60% of the 650 employees for which the ERE is proposed, so the company will have to resort to around 250 forced layoffs if it wants to reach the quota.
To avoid these traumatic departures and get more volunteers, the negotiating table is considering the possibility of extending the deadline for voluntary secondment by a week, negotiating sources said. According to the original calendar, that period began on October 22 and ended at 11:59 pm this Wednesday. Subsequently, the company management will have one week to communicate whether it accepts the volunteers’ request, since in some cases it has the right of veto. Once the last voluntary resignations have been counted, the company will be able to proceed with forced layoffs until the 650 interested people are completed. According to ERE documentation, three criteria will be used for these layoffs: surpluses by area; the lower functional versatility, knowledge, training and ability to adapt to the new organization and the lower evaluation of the worker’s performance or development potential.
The operator’s management, led by CEO Meinrad Spenger, has stated on several occasions that voluntariness would be the “preferential criterion” of the ERE and that traumatic withdrawals, resulting in the forced dismissal of 250 employees, would be avoided as far as possible would represent a setback for such plans. It must also be taken into account that forcibly dismissed employees will have lower compensation than volunteers.
trade union struggle
Precisely the question of the voluntariness of the ERE has caused a deep division between the unions since the beginning of negotiations with the company on 17 September. after a month of talks, the agreement was supported by representatives of UGT and Fetico and rejected by those of CC OO, the only three unions sitting at the negotiating table. Other trade union forces such as USO, CGT and ELA, although absent from the negotiations, also positioned themselves against the agreement agreed with the company. The main causes of the refusal are that the “total” voluntariness of all departures was not guaranteed and that the economic conditions for the dismissal and early retirement compensation were lower than those of the last ERE applied by Orange in 2021.
The UGT issued a harsh statement accusing CC OO and USO of “betraying the workforce”, since its union delegates joined the ERE “while verbally declaring themselves rejecting it and forcing no one to join”. Specifically, the UGT underlined that four of the five delegates of the CC OO ERE negotiating table agreed, despite having publicly rejected the conditions.
For their part, CC OO and USO denounce that many of the workers who have joined are “forced volunteers” and that if the 650 departures were not covered voluntarily it is due to the terrible economic conditions offered by the company. As for the members of their union who have joined the ERE, they stress that these are personal decisions that must be respected.
Conditions worse than 2021
Company sources claim that the Masorange ERE, initially planned for 795 workers and reduced to 650, is lower in number of people affected than the last two applied in the sector by Vodafone (898 exits, 27% of the workforce) and Avatel (674 victims , 35% of the total). They also argue that the economic conditions proposed by Masorange improve those of these two adjustments. However, dissenting unions respond that the conditions of the ERE are significantly worse than those applied by Orange in 2021 (MásMóvil has never created its own ERE).
In the current ERE, for those who voluntarily leave the company, the allowance is established in a range between 47 and 34 days per year worked (47 days up to January 2012 and 34 days from that date), with a limit of 24 monthly payment. For forced dismissals the amount is reduced to 45 and 33 days respectively. Added to these compensations is a voluntary inclusion bonus of 3,000 euros for employees with less than eight years of service; 8,000 euros, for those aged 9 to 12; and 15,000 euros for those who have worked in the company for more than 12 years. In the ERE 2021, for salaries lower than 25,000 euros per year, an allowance of 62 days has been established for each year worked; 61 days for wages under 30,000; 60 days for less than 35,000 euros; 59 days for less than 40,000 euros; 58 days for less than 50,000 euros and 57 days a year for those earning more than 50,000 euros.
As regards early retirement, in the current ERE, people aged 56 and 57 with seniority of 9 years or more can take advantage of this option; and those aged 58 to 62 with seniority equal to or greater than 5 years. Everyone will be paid 80% of the regulatory salary, which will be obtained from the sum of 100% of the fixed salary plus 50% of the variable salary. Until the age of 63, social security contributions will be paid according to the special agreement (CESS). Those over 63 will receive the legal minimum of 20 days and 12 monthly payments.
In 2021, early retirements were applied starting from 54 years of age for workers with a minimum seniority of nine years. The company paid 85% of net regulatory salary to people aged 54 to 55; and 87% of net regulatory earnings for those aged 56 and over. Income was paid until age 63, and the company was responsible for social security contributions and private health insurance until age 65.
According to the document agreed between the unions and the company, the ERE affects six companies (Orange Espagne, Orange España Comunicaciones Fijas, the most affected Technology (networks and systems), with 223 victims, followed by Finance
Interview with a Labor Relations Expert on Masorange’s Proposed ERE
Time.news Editor: Welcome, Dr. Lopez. Thank you for joining us today to discuss the recent labor regulation dossier proposed by Masorange. It certainly sounds like a complicated situation. Can you provide us with an overview of what’s happening?
Dr. Lopez: Thank you for having me. Yes, Masorange has initiated a labor regulation process affecting around 650 employees, with just over 400 of them voluntarily accepting the terms so far. This leaves the company in a position where they may need to enforce forced layoffs for approximately 250 workers, which is a significant concern.
Time.news Editor: It sounds like the company is trying to avoid forced layoffs, but why are so many workers hesitant to accept the voluntary terms?
Dr. Lopez: The reluctance largely stems from the economic conditions associated with the compensation packages being offered to those who leave voluntarily. Many employees feel that the terms aren’t as favorable as those in the past, particularly compared to the ERE implemented by Orange in 2021. Some workers are viewing the voluntary offer as inadequate, leading to what some unions are calling “forced volunteers”—essentially people feeling pressured to accept rather than having a genuine choice.
Time.news Editor: Speaking of unions, there seems to be a divide among them regarding this agreement. Could you elaborate on that?
Dr. Lopez: Absolutely. The negotiations have been contentious, with UGT and Fetico supporting the agreement while CC OO has rejected it. This rift suggests a significant split on how best to represent the employees’ interests. The UGT has accused CC OO of betraying their members, and the disagreement centers around the lack of guarantees for total voluntariness in departures and the low compensation compared to previous layoffs.
Time.news Editor: It must be tough for the workforce to navigate such conflicting messages from unions. How do you think this will affect employee morale and trust in the unions?
Dr. Lopez: That’s a critical point. Trust is crucial in labor relations, and when employees see their representation as fragmented or contradictory, it can lead to disillusionment. If workers feel that they are not being represented fairly or that they don’t have a solid ally in their unions, morale can suffer. This could lead to a host of issues, including reduced productivity and even an increase in turnover among those who remain.
Time.news Editor: Masorange’s management is trying to balance the needs of the organization with employee welfare. What are the potential ramifications if they proceed with forced layoffs?
Dr. Lopez: If forced layoffs proceed, Masorange may face backlash not just in terms of public relations, but also within the workforce. Dismissals can have lasting effects on workplace culture, leading to fear and instability. Furthermore, the financial compensation for forced layoffs is expected to be lower than for voluntary departures, which could lead to additional grievances among affected workers.
Time.news Editor: In your view, what steps could Masorange take to improve the situation and foster a more positive outcome?
Dr. Lopez: I believe they need to prioritize dialogue with the workforce and perhaps consider enhancing the compensation packages for voluntary departures. Extending the voluntary acceptance deadline might also help, allowing more employees to weigh their options without the pressure of an imminent deadline. Building a transparent communication strategy where employees feel their voices are heard can also mitigate some of the tension.
Time.news Editor: Thank you, Dr. Lopez, for your insights on this complex labor issue. It’s clear that Masorange faces a significant challenge in balancing its operational needs with the welfare of its employees.
Dr. Lopez: Thank you for having me. It’s essential that companies remember that their workforce is their greatest asset, and taking a humane approach in difficult situations pays dividends in the long run.