Spanish telecom operator Telefonica has agreed with the main unions to raise the wages of almost 13,000 workers in Spain by 7.8% in 2023 to offset the effects of high inflation, the company said on Wednesday.
The pay rise includes 6.3% to offset the impact of inflation between 2019 and 2022 and 1.5% in anticipation of consumer price increases in 2023, Telefonica said in a document sent to employees. The pay increase kicked in on Jan. 1.
Additionally, workers will get a 300-euro one-off payment in October.
The UGT union confirmed the agreement in a statement.
Telefonica employs about 16,000 workers in Spain. Another negotiation will kick in later this year for the remaining workers whose contracts are not covered by the agreement.
Spain's inflation rate in 2021 and 2022, respectively at 6.5% and 5.7%, were the highest since the early 1990s, prompting unions to press sometimes reluctant employers for pay raises, resulting in strikes and protests.
In many industries, such as banking and retail, companies have granted significant pay raises. (Reporting by Inti Landauro Editing by Mark Potter)