Telefónica’s bargain with the unions: Labor-mediated downsizing lessens conflict

Abstract

Purpose

Analyzes the restructuring approach followed by the highly-profitable Telefónica in its 2011 redundancy plan. Explores unions’ response to management strategy.

Design/methodology/approach

Follows a case-study approach, constructing a dataset with information from company reports, committee records, union documents, press releases and other available sources, such as specialized journals and newspapers.

Findings

Tries to show how massive job cuts have been implemented through a labor-mediated downsizing strategy that mitigates disagreement and industrial conflict.

Originality/value

Tackles the question of how unions respond to corporate restructuring (involving downsizing) in countries where industrial-relations institutions remain relatively strongly embedded.

Citation

(2015), "Telefónica’s bargain with the unions: Labor-mediated downsizing lessens conflict", Human Resource Management International Digest, Vol. 23 No. 6, pp. 12-14. https://doi.org/10.1108/HRMID-07-2015-0111