Spain: the PSA Peugeot Citroën factory at Vigo with support from only one union reaches an agreement in principle that provides for wage reductions

Management and unions have negotiated a competitiveness plan for the PSA Peugeot Citroën factory at Vigo, Galicia. The plan allows for a 5% cut in basic pay and the reduction or even elimination of a variety of bonuses and pay premiums. Only SIT-FSI, the main union sitting on the works council, ratified the agreement in the face of opposition by representatives of two large central union bodies, UGT and CCOO as well as the Galician unions CIG and CUT. 
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On Monday November 17, the independent workers union (SIT-FSI) accepted the agreement put forward by the company for the PSA Peugeot Citroën factory at Vigo, Galicia. The agreement comprises changes to the salary scale and a 5% reduction in basic pay as well as reductions in other staff bonuses and pay premiums. Management at the factory indicated that the award by PSA of the manufacturing contract for the new K9 van was hanging in the balance as the Vigo site was competing with a factory in Slovakia where salaries are 50% lower.

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