Seat has offered a 30% salary cut to 140 workers at its gearbox unit instead of pursuing a redundancy contract to dismiss 230, Spanish newswire EFE reported.
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Seat will absorb the 230 workers under an existing group relay contract that enables it to substitute workers aged over 60 years old for younger ones that earn lower wages in their first three apprentice years.
Under the scheme, the 140 staffers would need to accept the cuts to join the group’s payroll, EFE said, citing trade union sources.
While relatively happy with the offer, unions plan to negotiate better terms for the affected workers and will continue to meet with Seat in coming days. The two parties have set a 21 June deadline to reach an agreement. If they don’t, Seat’s original redundancy plan will be implemented.
Gearbox has faced losses because of falling demand for its transmissions, which are used in lower-powered and specified models. The company employees 1,350.
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By GlobalDataNeither Seat nor its trade unions could not be reached for comment.
Ivan Castano
