Restructuring events
European Restructuring Monitor (ERM)
The restructuring events database contains factsheets with data on large-scale restructuring events reported in the principal national media and company websites in each EU Member State. This database was created in 2002.
At the end of September 2016, Ericsson Spain announced a collective dismissal of up to 350 employees (12% of the staff employed in Spain). With this measure, the company aims to adapt to the plan for reducing costs started by the group at the international level in 2014 (reduction of EUR 934 million agreed in 2014 and an additional reduction of EUR 476 million in 2015). This is the third collective dismissal in the last three years: in 2013 Ericsson Spain carried out a collective dismissal affecting 190 employees and a further one in 2015 affecting 130 employees.
Update: 2/12/2016
The company and the trade union CCOO have achieved an agreement that reduces the number of workers affected by the employment adjustment from 350 to 281. Severance payment agreed improve the minimum conditions regulated in the law. Thus, workers will receive a compensation equal to 45 days per year worked up to a maximum of 42 months. It is also including an early retire plan for workers aged 53, until they reach 63 years. In addition, 26 of the workers affected by the dismissal will be entitled to a training plan aiming to improve their employability. The agreement has not received the support of all the trade unions been represented in the company. The trade unions UGT, STC y CGT rejected the agreement. As a consequence of this division, a referendum was called and the majority of the staff supported the agreement proposed by the trade union CCOO
Update: 19/12/2016
Ericccson will finally dismiss 184 workers. The reduction in the initial number of dismissals proposed has been achieved by means of an internal relocation plan agreed with the trade unions. This will allow 141 workers that, in the first plan, were to be dismissed, to continue working in the company, in different jobs and categories.
Eurofound (2016), Ericsson, Internal restructuring in Spain, factsheet number 88967, European Restructuring Monitor. Dublin, https://apps.eurofound.europa.eu/restructuring-events/detail/88967.