Spanish motor industry federation Anfac has asked the government to introduce measures to increase labour flexibility in Spain.
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Anfac said the effort is necessary to boost competitiveness in one of Europe’s biggest car-making industries and stem the rising tide of corporate
relocation out of the country.
Anfac wants the new socialist PSOE government to extend temporary contracts to five years from 12 months currently. The initiative is expected to increase
worker productivity, promote job stability and save the industry money.
About 10% of Spain’s 72,000 auto-industry workers have temporary contracts, Anfac claimed.
The state should also lower the industry’s tax burdens, which Anfac said are among Europe’s highest. Train and road infrastructures should also be improved to foster foreign investment. The sector also needs to improve operating margins, which have declined to 0.7% from 1.8% in the past five years.
Spain’s auto industry should perform well in 2005, matching or surpassing this year’s production forecast of 1.5 million cars, as demand is expected to remain
high despite fluctuating oil prices, according to Anfac.
Regarding the Kyoto protocol, Anfac said the Spanish auto industry is already meeting emission requirements and that the legislation will not have a negative
impact.
Ivan Castano
