MADRID (Reuters) - Telefonica (BME:TEF) has agreed with its main unions to raise 2023 wages for almost 13,000 workers in Spain by 7.8% amid high inflation, the telecoms operator 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 is effective from Jan. 1.
Additionally, workers will get a 300-euro one-off payment in October.
The UGT union confirmed the agreement in a statement.
Telefonica's Spanish unit employs about 16,000 workers. Further negotiations will take place later this year for workers whose contracts are not covered by the agreement, a spokesperson said.
An additional 5,000 employees who work at the company's headquarters in Spain are not part of the pay increase agreement, the spokesperson added.
Spain's inflation rate in 2021 and 2022 hit 6.5% and 5.7% respectively, the highest levels since the early 1990s. That prompted 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.