As the final step in the ongoing restructuring process that the Swedish fashion group H&M is undergoing in Spain, the group has agreed with the CCOO and UGT unions to directly dismiss almost 100 employees in its offices in Madrid and Barcelona for organizational reasons. This means that the scope of the measure is smaller than the company originally promised.
As the CCOO union announced, the final number of affected employees has not yet been finally determined, as the implementation of individual agreed measures to cushion the process is still pending. Overall, however, the social plan (ERE) is expected to affect around 100 jobs in H&M’s office locations in Madrid and Barcelona.
“Today, the staff of the H&M offices in Barcelona and Madrid were informed of the agreement related to the ERE proposed by the company for organizational reasons,” CCOO said in a statement. The markets of Spain, Portugal, Italy, France, Belgium and Luxembourg are controlled from these locations. Among other things, internal and international transfer opportunities within the H&M Group as well as a program for external professional reorientation were agreed for the employees.
The severance payment regulation provides for the maximum rates provided for by law: 45 daily salaries per year of employment until February 2012 and 33 daily salaries per year from that point until today, each capped at a maximum of 24 gross monthly salaries. In addition, additional compensation was agreed based on length of service: 2,000 euros for up to five years, 4,000 euros for five to ten years, 6,000 euros for ten to 20 years and up to 8,000 euros for more than 20 years of service. For employees over 50 years of age, there is an additional special payment of 4,000 euros.
In addition, the agreement provides for further protective regulations, including the possibility of changing jobs between affected and non-affected employees, as well as a priority regulation for certain groups of people, such as single parents, families with large children, couples in which both partners are affected, pregnant women or employees on parental leave, people with a severe disability or relatives in need of care, and long-term employees.
Accompanying the social plan, internal and international transfers within the H&M Group as well as an external outplacement program were agreed with the service provider Lee Hecht Harrison. According to CCOO, we will continue to work together with company management to reduce the originally planned number of layoffs as much as possible.
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