Seat on Wednesday said it had asked its 14,000 workers to take a cut in hours and a proportional cut in pay in the face of falling demand in its main export markets, according to Reuters.

Go deeper with GlobalData

Data Insights

The gold standard of business intelligence.

Find out more

Related Company Profiles

View all

The company reportedly declined to give details of the size of the pay cut it had proposed.


“We put this proposal to unions yesterday and we’ve arranged a new meeting for tomorrow,” a Seat spokesman told Reuters which added that unions rejected the idea.


“We don’t agree to a wage cut because we don’t think that is the right way to solve Seat’s problems,” a representative of one of Spain’s two main unions, the CCOO, told Reuters.


A spokesman for the other main union, the UGT, reportedly urged the company to outline its business plan for the next few years and clarify what the proposal would mean for wages.

How well do you really know your competitors?

Access the most comprehensive Company Profiles on the market, powered by GlobalData. Save hours of research. Gain competitive edge.

Company Profile – free sample

Thank you!

Your download email will arrive shortly

Not ready to buy yet? Download a free sample

We are confident about the unique quality of our Company Profiles. However, we want you to make the most beneficial decision for your business, so we offer a free sample that you can download by submitting the below form

By GlobalData
Visit our Privacy Policy for more information about our services, how we may use, process and share your personal data, including information of your rights in respect of your personal data and how you can unsubscribe from future marketing communications. Our services are intended for corporate subscribers and you warrant that the email address submitted is your corporate email address.

Reuters said a smaller union, the CGT, called a demonstration for October 5 to protest against Seat’s suggestion.


The report noted that Seat said in late August it was employing 800 workers too many for current production levels.


In the first eight months of the year car production fell 8.5% at its Martorell plant near Barcelona. The company told unions on Tuesday it was not expecting a pick-up in production in the rest of the year, Reuters said.


The report added that, in 2004, Seat made 416,000 cars at Martorell but says it expects output to fall to around 381,000 this year. The company, which exports around 80% of its cars, has seen demand squeezed in its export markets due to strong competition from Asian manufacturers.