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.

Discover B2B Marketing That Performs

Combine business intelligence and editorial excellence to reach engaged professionals across 36 leading media platforms.

Find out more

“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.

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

Ivan Castano

Just Auto Excellence Awards - Nominations Closed

Nominations are now closed for the Just Auto Technology Excellence Awards. A big thanks to all the organisations that entered – your response has been outstanding, showcasing exceptional innovation, leadership, and impact.

Excellence in Action
Continental has secured the Window Displays Innovation Award in the 2025 Just Auto Excellence Awards for its Window Projection solution, transforming side windows into dynamic, data-rich canvases. Discover how this compact projection technology and intelligent software are reshaping in-car UX and opening fresh revenue streams for OEMs and mobility providers.

Discover the Impact