Renta 4 : The 13,000 employees linked to the Agreement of Linked Companies will receive a 7.8% raise in 2023 plus another €300 in October. This rise corresponds to the adjustment over the period 2019/2022, when the CPI had an accumulated rise of 12.5% and salaries rose by 6.5%, and to a rise of 1.5% in 2023. Work is also underway to update the salaries of non-agreement staff, which includes some 3,000 workers.
Assessment:
1-. Negative but expected news. We believe that the sharp rises in salaries are “obligatory” due to the current inflationary environment and that, without a doubt, they put pressure on margins in Spain, which continue to trend downwards. We recall, however, that Telefónica, and the other big players in the telecoms sector, have announced tariff hikes to limit their impact and that Telefónica has carried out several voluntary redundancy programmes in recent years to adjust the workforce. P.O. 4.6 eur. OVERWEIGHT.
