Spain’s unions are thrilled. Against a backdrop of a slow improvement in the country’s labor market, albeit still with more than 20% unemployment, the auto sector continues to make good progress. Several automakers including Volkswagen, Renault, and PSA have announced new investment plans as well as plans to produce new models for their plants in Spain.
The carmakers’ good news announcements come in exchange, as part of negotiations with the employees’ representatives, for a return to great levels of flexibility. The crisis years of production falloff seem well and truly consigned to the past, and the unions are now in a position to have the efficiency and trustworthiness of the Spanish auto sector officially recognized. The unions appear to have found a balance between making effort towards flexibility and the defense of social rights,...
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