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H&M agrees to its ERE with 492 dismissals and compensation for the legal maximum | Companies

H&M agrees to its ERE with 492 dismissals and compensation for the legal maximum | Companies

The UGT and CC OO unions have reached an agreement with the Swedish textile group H&M due to the collective dismissal proposed by this in its Spanish subsidiary, and whose initial impact reached 529 dismissals with the closure of 28 stores.

As agreed by the parties, the layoffs will be 492, which is 96 less than the original approachwith compensation analogous to unfair dismissals at the legal maximum, one of the main demands of union representation. As happened in the group’s previous ERE, three years ago, H&M will pay 45 days for 24 monthly payments to those who have a contract prior to 2012, when the labor reform came into force, and 33 days from that date. In addition, a payment of 2,500 euros will be paid for those who have between zero and five years of service; 3,500 for those from five to 10 years old; and 4,500 euros for those who have been in the company for more than 10 years. Membership in the outings will be voluntary.

“It has been possible because we have achieved our priority objectives of minimizing the initial impact, vacancies with more days than those initially offered by the company, as well as voluntariness and good conditions for leaving the company for the people who have finally been affected, avoiding thus traumatic departures,” both unions say in a joint statement.

Another of the points signed is the opening of 48 vacancies for the staff affected by the closed stores, with 24-hour workweeks, and 27 more than 12 hours. Employees over 50 years of age will have access to a support and relocation plan that will last until they find a new job.

The company justified the need for the adjustment in that it needs to “have our stores in the right locations and be competitive.” “We constantly evaluate and optimize our store portfolio to align it with our global strategy, with the aim of meeting the expectations of our customers,” the company said in a statement when it made public the decision to undertake the ERE. “This involves securing the best locations that are relevant to our customers, improving the shopping experience in our current stores, actively seeking new opportunities and making decisions about store closures when necessary.”

The ERE signed in mid-2021 led to the departure of 350 workers, but these ended up being more: in 2023, the average workforce was 3,600 people, 455 less than two years before.

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