Spanish unions will request a 4% salary increase and reduced working schedules when they begin negotiating PSA-Peugeot Citroen’s new collective wage agreement next week, the Vigo factory workers’ committee president, Jose Fernandez Barros, told just-auto.

He said the other plant union – UGT – would likely match Barros’ CCOO union demands.

“Last year, inflation was 4.2% in Spain and the current wage agreement doesn’t provide the option for reduced working schedules,” Barros said, adding that unions would also demand better working conditions and benefits for PSA’s Vigo and Villaverde (Madrid) factories.

The last wage agreement expired last December. While unions would like to sign a replacement soon, negotiations could drag on for months, Barros said.

PSA’s sales should rise 5% globally this year after increasing 3.5% in 2007, according to Barros.

“We want the new deal to offset big inflation rises in Spain. Obviously, the fact that the company’s business is doing will give us more room in the negotiations,” he added.

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PSA led Spanish car production last year, churning out 547,082 units at Vigo, up 20% from 2006.

Ivan Castano