Spain: unions and management at Renault postpone the shedding of 1300 jobs until end January 2007 to allow time for negotiation

Discussions on job cuts and on the industrial project for the plants. Both majority unions, the worker commissions and UGT, have agreed to a negotiation, as demanded by management, dealing jointly with the renewal of the company agreement and the suppression of 1300 jobs in production (1000 jobs on the assembly lines and 300 intermediary jobs). Management and unions have set for the negotiation the time limit of January 31, 2007, with no job cuts in the interval. Meanwhile, the unions have also accepted reduction of 40 jobs over a provisional period of two months, 22 at Valladolid ( where the Modus model is assembled)  and 18 at Palencia (which produces the Megane). On its side, management has undertaken to submit an industrial plan for the future of the plant at Valladolid, particularly affected by the marketing failure of the Modus, with the details of the plan being outlined during the negotiations starting December 5. The unions, having largely yielded to management demands, have decided to play for time in order to obtain a negotiated solution for the 1300 redundant workers according to management calculations. They are hoping to achieve an early retirement plan of voluntary departures for the workers aged over 57 and to avoid thereby the rest of the personnel being affected by a reduction of the workforce. “ I am convinced that one day there will be nor automobile plants in Spain, but this day has not yet arrived because Spain still has some of the most competitive plants in Europe”, asserted a few days ago, José Maria Fidalgo, the worker commissions general secretary. His UGT colleague, Candido Mendez, recalled the demand for a “plan for the future beyond 2009” for the sites in Valladolid and Palencia. The representatives of the two unions, who have decided to present a united front at the negotiating table, stressed that the conciliatory attitude of the workers’ delegates is contingent on a consequential response of management to the industrial future of Renault in Spain.