In August 2004, Spain was hit by a strike by firms and self-employed workers in the vehicle breakdown and recovery services sector, with about 80% of services affected. The action arises from a dispute over fees between the service providers and insurance companies.
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In August 2004, Spain was hit by a strike by firms and self-employed workers in the vehicle breakdown and recovery services sector, with about 80% of services affected. The action arises from a dispute over fees between the service providers and insurance companies.
For most drivers in Spain, vehicle breakdown and recovery services are included in their insurance policy, and the insurance firms conclude contracts with the breakdown and recovery companies to provide this service. The latter are represented by two associations: the National Association of Vehicle Breakdown Companies (Asociación Nacional de Empresas de Auxilio en Carretera, ANEAC), with 670 members and 4,000 vehicles; and the Spanish Confederation of Vehicle Breakdown Services (Confederación Española de Empresas de Asistencia en Carretera, CEPAS), with 450 members and 2,000 vehicles. The sector is composed mainly of self-employed workers with only one vehicle, who are available 24 hours a day, 365 days a year. A breakdown van costs over EUR 60,000, and a trailer costs over EUR 360,000. Drivers earn on average around EUR 1,500 per month, including overtime. The observance of social security and tax payment obligations is thought to be very low in the sector. According to a study by the University of Alicante, to meet health and safety requirements, each breakdown vehicle should be operated by an average of 4.6 workers, whereas in fact they are normally operated by only one.
Negotiations over fees between the insurance companies, ANEAC and CEPAS were broken off on 24 August 2004, with no agreement in sight. The insurance companies feel that each breakdown firm should negotiate the fees directly with each insurance company in order to respect the principle of free competition. Based on studies by the University of Alicante and the Transport Price Observatory of the Ministry of Enterprise (Observatorio de Precios del Transporte del Ministerio de Fomento), the breakdown firms consider that the fees they receive - an average of EUR 25 per service - should rise by 80% to cover costs. It has been reported that in Germany the equivalent fee is EUR 62.8, and in Portugal at least EUR 30.8.
A strike by companies and self-employed workers in the sector began in the Basque Country in late July 2004. Following the breakdown of talks with the insurance companies, the dispute spread to include around 80% of breakdown services in Spain by the beginning of September. The strike spread to the regions of Castilla y León, La Rioja, Aragon, Catalonia, Navarre, Extremadura, Galicia, Valencia and Madrid, and to the provinces of Seville, Cadiz, Granada and Jaén. Operators in Ibiza and Majorca decided not to join the strike, but those in Minorca did. The vehicle breakdown services in Cantabria, which had postponed their decision, finally decided to join the strike. The operators in the rest of Andalusia and Murcia were still considering whether to join the strike, while those in the province of Malaga had postponed their decision. At a time when many Spanish people are returning from their holidays, the action may cause serious traffic problems.
The associations of breakdown firms are voluntarily offering minimum services to ensure that vehicles involved in accidents are removed from the roads, but they are not towing them to garages or removing cars that have broken down. The 20 or so insurance firms, led by the Spanish Federation of Insurers and Reinsurers (Unión Española de Entidades Aseguradoras y Reaseguradoras UNESPA), are reimbursing any expenses incurred by policy holders who have to use alternative services. UNESPA also demands that 'those who do not wish to support the strike be guaranteed the right to work'.
Meanwhile, the government has drawn up an emergency plan that involves using of fire brigade and town council vehicles to remove broken down vehicles. It is also placing pressure on the parties to reach an agreement.
Eurofound recommends citing this publication in the following way.
Eurofound (2004), Action hits vehicle breakdown services, article.
