Social Dialogue

'We shall respect the rights of our employees to belong to the trade union organization of their choice and we shall not tolerate any kind of reprisal or hostile action against employees participating in trade union activities'.Telefónica's Business Principles

The Business Principles, as well as the Social Protocol on International Agreements and the Code of Conduct existing between Union Network International (UNI) and Telefónica, are the benchmark with regard to social dialogue in Telefónica.

Specifically, in the exercise of the rights of association, participation and collective bargaining, Telefónica developed activities in different parts of the organisation and among Human Resources professionals throughout 2008. These activities were channelled towards dissemination, enhanced knowledge and application of both the Business Principles and the international agreements in Telefónica's various regions and businesses.

In December 2007, the Company signed a new code of conduct with Union Network International (UNI) and the Spanish trade unions UGT and CCOO; this replaced the previous one, signed in 2001. In this agreement, Telefónica undertook to uphold union and industrial rights in all of our operations, affording protection to all of the Group's workers, regardless of the country in which they work.

A clear example is HR Wings, the HR Community frequently accessed by employees throughout the world who work for this Unit.