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After the failure of the negotiations with the ministries of Development, Labour, Economy and the Interior, on 16 October the lorry drivers started a strike called by the majority employers' organisation, the Spanish Goods Transport Confederation (Confederación Española de Transporte de Mercancías, CETM). The strike and the incidents caused concern about the delivery of supplies, but at the end of October an agreement favourable to the hauliers put an end to many months of bargaining and a few days of industrial action.
A long period of bargaining and a rapid and intense dispute
The hauliers demanded tax concessions due to the effects of the rising fuel prices on the sector. In the first stage of bargaining a provisional agreement was reached to maintain the Special Hydrocarbon Tax ('Impuesto Especial de Hidrocarburos'), and to reduce the insurance premiums tax and the Economic Activities Tax ('Impuesto de Actividades Económicas', IAE). The details of the agreement were:
- The Ministry of Labour (Ministerio de Trabajo) agreed that hauliers could take early retirement when they have an occupational illness, regardless of their period of Social Security contributions.
- Hauliers could recover the points lost in the new driving licence by attending training courses.
- The government agreed to coordinate traffic restrictions on Sundays and public holidays in the different communities.
- Self-employed workers would enjoy a 50% reduction in the Economic Activities Tax ('Impuesto de Actividades Económicas', IAE).
- The insurance premium tax would be reduced by 100% in 2006 and 50% in 2007.
- A professional fuel tax would be applied.
- Several occupational illnesses would be recognised and Social Security (Seguridad Social) contributions could be deferred.
However, according to the newspaper El País, the hauliers wanted the Ministry of the Economy and Inland Revenue (Ministerio de Economía y Hacienda) to eliminate the Retail Hydrocarbon Tax ('Impuesto sobre Ventas Minoristas de Hidrocarburos') (the so-called 'health cent'), a tax that has been transferred to the autonomous communities. This tax consists of a supplement of up to 2.4 cents on fuel tax. In September the government decided to add another 2.4 cents (coming to a total of up to 4.8 cents) to reduce the health deficit. The tax is currently applied in only four communities (Madrid, Galicia, Asturias and Catalonia), though most communities are preparing for its immediate introduction. Its application prevented a rapid agreement between the administration and the hauliers.
To obtain its demands, the Spanish Goods Transport Confederation (Confederación Española de Transportes de Mercancías, CETM), which is the majority employers' association in the sector and is affiliated to the Spanish Confederation of Employers' Organizations (Confederación Española de Organizaciones Empresariales, CEOE), called a strike for late October. According to the figures provided by the CETM, this employers' organisation represents 34,000 companies with 150,000 vehicles and employs 250,000 entrepreneurs and employees.
The CETM did not control the whole dispute, and not all the sectoral organisations were in agreement with it. The Spanish National Federation of Associations (Federación Nacional de Asociaciones de España, Fenadismer), which represents small hauliers, claimed that the strike called by the employers' associations affiliated to the CEOE was misleading. Fenadismer did not support the hauliers' strike, and claimed that the total cost of the damage caused by the strike to the sector and to the overall economy came to EUR 65 million. They claim that one of the immediate consequences of the agreement with the contractors will be an increase in retail prices and inflation.
The government makes concessions to reach an agreement
The main associations of hauliers, the government and the contractors' associations finally signed an agreement on 19 October. The agreement with the administration involves the approval of 40 measures by five ministries (Development, Economy and Inland Revenue, Labour and Social Affairs, Interior and Justice). The government has eliminated the Retail Hydrocarbon Tax and has agreed to compensate the autonomous communities for lost income.
The hauliers' strike continued until an agreement was also reached with the contractors main associations of contractors (Aecoc, Transprime and Aeutransmer). Aecoc is the main contractors' association, with more than 20,000 members and a total turnover of more of EUR 150 million per year.
The main points of the agreement were the acceptance by the contractors of a 14.3% increase in prices due to rising fuel prices. Furthermore, a mechanism for the monthly revision of prices will be introduced and a system will be established to guarantee its fulfilment. A tripartite commission will meet every two months to monitor compliance. The aim is to avoid price cuts, which has been quite common due to the atomisation of the sector.
The government has authorised the autonomous communities to eliminate the Retail Hydrocarbon Tax for lorry drivers (so far 1.7 cents in Madrid, 2.4 cents in Catalonia, 1.2 cents in Galicia, and 2 cents in Asturias) and will compensate the communities for the loss of income. Furthermore, it has decided to eliminate the second surcharge in 2006 and 2007, and will also compensate the communities that decide to apply it.
The Ministry of Development (Departamento de Fomento) has agreed to replace the current strategic transport plan with a new one, and to increase the subsidies for dismissal or retirement of self-employed workers in the sector. Finally, the Ministry of the Interior (Ministerio de Interior) has agreed to reduce the requirements of the driving licence points system, to eliminate the general traffic restrictions and to establish certain corridors that will be open to heavy traffic all year round.
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