Long-term deals in Spanish car firms

Three motor manufacturers in Spain have recently reached agreements on pay and hours.

The three-year deal for SEAT, part of the German Volkswagen group, involves a 2.5% increase for the 14,200 employees affected in the current year (from 1 January) and inflation plus 0.4% in 2001 and 2002.

Additional Saturday working is involved but this is compensated by equivalent time-off and additional payments. Overall hours are being cut by the addition of a day's extra holiday a year from 2002. The agreement also involves a regrading which will benefit 4,900 employees.

At Fasa-Renault, part of the French Renault group, a new four-year agreement starts on 1 January 2000 covering 12,000 employees. This provides for inflation plus 0.5% in the first three years (likely to produce a 2.5% increase this year) and inflation plus 0.3% in 2003. Weekly hours will be cut to 36.5 by 2003.

Unions have also signed a four-year deal at the Japanese manufacturer Suzuki, which has a plant in Asturias in northern Spain. This is backdated to January 1999 and provides for 0.8% over inflation in 1999 and 2000 and 0.5% over inflation in 2001 and 2002. Working time is reduced by 16 hours a year over the four years.