Correos and Unions Reach Employment Guarantee Agreement Amid Structural Changes
The agreement includes measures for voluntary leave, worker relocation, and a focus on strategic objectives.
Correos has finalized a new agreement with major unions, including Comisiones Obreras (CCOO), Unión General de Trabajadores (UGT), CSIF, and SL, aimed at ensuring job security as the public postal service adapts its workforce to strategic initiatives designed to counteract the decline in postal services.
The agreement allows for the voluntary incentivized leave for between 1,100 and 1,200 civil servants aged 57 or older, based on estimates from union sources.
In addition, it has been announced that 800 employees from 36 mixed operational centers of Correos and Correos Express, scheduled to close by 2025, will be reallocated, potentially accompanied by a compensation package of 1,500 euros, which is still under negotiation.
Furthermore, the process for ongoing job transfers will remain active throughout 2025, with the first of two planned adjudications expected before summer, according to reports by UGT.
This follows CCOO's assertion that the job offers will balance the voluntary departures of both civil servants and labor personnel, as outlined in a framework agreement set for completion by December 31, 2024. This initiative is a part of a broader plan to rejuvenate the workforce from 2024 to 2028.
In addressing the broader context, Correos stated that these actions, along with other efforts to realign the company's operations, seek to diversify revenue and provide essential services to strengthen social and territorial cohesion.
The goal is to optimize the workforce in line with new business initiatives to enhance service delivery and improve competitiveness in light of declining postal business.
CCOO highlighted that this agreement marks the first phase of the Strategic Framework Agreement signed on December 31, 2024, and includes discussions on key issues impacting over 50,000 employees within the company.
Negotiations will continue until June 30, exploring conditions surrounding the first round of fixed job offers planned up to 2028, aimed at offsetting the voluntary departures of civil servants and labor personnel.
Key discussion points for the upcoming negotiations include pre-retirement provisions for nearly 8,000 labor workers by 2028, salary improvements, and the introduction of a 35-hour work week.
Furthermore, there will be discussions on pay increases through an incentive plan, in light of the rising minimum wage approaching the current salaries of the workforce.
Another significant focus is the design of a new professional career framework intended to better compensate middle and senior management's professionalism, which has been quoted as underappreciated.
The agreements formed in this second phase will be critical in finalizing the new collective agreement and personnel plan essential for progressing with the implementation of the Strategic Plan and transforming Correos to ensure the company’s profitability.
The Strategic Plan also outlines a revenue diversification strategy through an expanded range of commercial services and highlights the growing role of the public company as an ally of the government administration.
Additionally, it presents a modernization and technological transformation plan aimed at automating operations, enhancing internationalization efforts, and investing in new infrastructure and vehicle fleets to increase operational capacity while meeting environmental objectives.
The agreement allows for the voluntary incentivized leave for between 1,100 and 1,200 civil servants aged 57 or older, based on estimates from union sources.
In addition, it has been announced that 800 employees from 36 mixed operational centers of Correos and Correos Express, scheduled to close by 2025, will be reallocated, potentially accompanied by a compensation package of 1,500 euros, which is still under negotiation.
Furthermore, the process for ongoing job transfers will remain active throughout 2025, with the first of two planned adjudications expected before summer, according to reports by UGT.
This follows CCOO's assertion that the job offers will balance the voluntary departures of both civil servants and labor personnel, as outlined in a framework agreement set for completion by December 31, 2024. This initiative is a part of a broader plan to rejuvenate the workforce from 2024 to 2028.
In addressing the broader context, Correos stated that these actions, along with other efforts to realign the company's operations, seek to diversify revenue and provide essential services to strengthen social and territorial cohesion.
The goal is to optimize the workforce in line with new business initiatives to enhance service delivery and improve competitiveness in light of declining postal business.
CCOO highlighted that this agreement marks the first phase of the Strategic Framework Agreement signed on December 31, 2024, and includes discussions on key issues impacting over 50,000 employees within the company.
Negotiations will continue until June 30, exploring conditions surrounding the first round of fixed job offers planned up to 2028, aimed at offsetting the voluntary departures of civil servants and labor personnel.
Key discussion points for the upcoming negotiations include pre-retirement provisions for nearly 8,000 labor workers by 2028, salary improvements, and the introduction of a 35-hour work week.
Furthermore, there will be discussions on pay increases through an incentive plan, in light of the rising minimum wage approaching the current salaries of the workforce.
Another significant focus is the design of a new professional career framework intended to better compensate middle and senior management's professionalism, which has been quoted as underappreciated.
The agreements formed in this second phase will be critical in finalizing the new collective agreement and personnel plan essential for progressing with the implementation of the Strategic Plan and transforming Correos to ensure the company’s profitability.
The Strategic Plan also outlines a revenue diversification strategy through an expanded range of commercial services and highlights the growing role of the public company as an ally of the government administration.
Additionally, it presents a modernization and technological transformation plan aimed at automating operations, enhancing internationalization efforts, and investing in new infrastructure and vehicle fleets to increase operational capacity while meeting environmental objectives.
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