A ground-breaking collective agreement was signed in May 2004 at the SEAT motor manufacturing plant in Martorell, Spain, SEAT . The main innovative features are a five-year duration, the introduction of autonomous work groups, the use of 'hours pools' to adapt working time to changes in demand, and new family-friendly leave arrangements.
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A ground-breaking collective agreement was signed in May 2004 at the SEAT motor manufacturing plant in Martorell, Spain, SEAT . The main innovative features are a five-year duration, the introduction of autonomous work groups, the use of 'hours pools' to adapt working time to changes in demand, and new family-friendly leave arrangements.
In May 2003, after a lengthy dispute, a new collective agreement was concluded at the Martorell plant of the SEAT motor manufacturing company (part of the German-based Volkswagen group). On 16 April, workers at the plant had gone on strike, in response to a trade union call, to oppose company proposals to reduce the hourly pay rate and increase the flexibility of working time. In response to the strike, SEAT management presented a redundancy procedure affecting 415 employees. An intervention by the Minister for Labour and Industry in the Catalonia regional government helped to defuse the situation and paved the way for a return to bargaining.
On 13 May, a ground-breaking agreement was reached at the company, signed by the Trade Union Confederation of Workers’ Commissions (Comisiones Obreras, CC.OO) and the General Workers’ Confederation (Unión General de Trabajadores, UGT). These two unions presented the draft agreement to a referendum among the whole 15,000-strong workforce. However, the third trade union represented in the company, the General Confederation of Labour (Confederación General del Trabajo, CGT), rejected the deal.
Main innovations
The agreement contains two major innovations:
it has a five-year duration, from May 2004 to May 2008 inclusive. This long terms follows a trend that has been observed in recent years and aims to offer a long period of stable industrial relations to deal with the pressure of competition within the framework of globalisation. Commentators note that agreements with such a long duration may involve industrial conflict during the bargaining stage because both sides have a lot at stake; and
the introduction of the system of group work based on 'management by objectives'. Each group will have a leader/coordinator who will act as its leader and coordinator. The idea is that many of the tensions and disputes arising from work rates will be dealt with internally by the group and its leader. The leader/coordinator will receive a bonus of EUR 44 per month, or EUR 528 per year. The team will also receive a variable bonus according to the meeting of objectives, with a guaranteed minimum of EUR 100 per year for being willing to work in groups.
Pools of working hours
The new agreement also provides for the establishment of 'pools' of working hours (or working time accounts), whereby employees may up to 200 hours extra over a certain period, which are then compensated by up to 240 hours of time off in periods of lower demand. In other words, the pools of hours allow working time to adapt further to variations in the production cycle (ES0306202N). Extra hours worked during the week from Monday to Friday attract equivalent time off, but extra hours worked on Saturdays and public holidays also attract a monetary bonus. Furthermore, when three shifts work in rotation, a working time of six to 10 hours per day may be established according to needs.
Hours pools/accounts (ES0404205F) are one of the most common types of flexibilisation of working time in the motor manufacturing sector (see Convenios en el sector de automoción, FM/CC.OO Secretaria de automoción, Madrid, 2004). For example, Mercedes Benz Spain also has a pool of between plus five and minus 18 days, which may be carried over over to the following year. Furthermore, its agreement provides for the possibility of working 20 Saturdays per year and breaking annual leave into sections, though with a guarantee of three consecutive weeks. At Renault, the pool is between plus 25 days and minus 20 days, with work on 12 Saturdays per year and a guarantee of 18 consecutive days of leave. At Nissan, there are 10 working Saturdays per year, either compensated by 1.5 days off each or paid. At Iveco, a lorry manufacturer, the collective agreement provides for individual pools of 200 hours over the four-year term of the agreement, but with a maximum of 96 hours per year. If an increase in production continues for a period of more than six months, part-time contracts at Iveco will be converted into full-time contracts. On the other hand, in periods of falling demand and production, bonuses will be cancelled for two years and 50% of the working time not recovered will be charged to the workers.
Pay provisions
The new SEAT collective agreement provides for wage moderation, with pay increases at the level of the rise in the retail prices index (RPI), plus increases in productivity, as follows
| Year | Pay rise |
| 2004 | RPI 0.5% |
| 2005 | RPI 0.3% |
| 2006 | RPI 0.3% |
| 2007 | RPI 0.3% |
| 2008 | RPI 0.3% |
The agreement. also introduces a 'safeguard' clause: if SEAT makes an operating loss before taxes and dividends during two consecutive years, the flexibility and pay provisions must be renegotiated in order to ensure employment stability and the competitiveness of the company.
Social issues
The agreement also covers 'social' issues such as access to housing loans of between EUR 3,000 and EUR 6,000 financed by VW Bank. This is regarded as important because of the enormous increase in the price of housing in Spain and the serious burden that mortgages represent for families (ES0302106F).
With regard to reconciliation between work and family life, the agreement provides leave to attend the marriage of in-laws on the same conditions as already provided for blood relations, and for leave for the birth of grandchildren on the same conditions as provided for the birth of children. Leave is also granted to attend trials and for parents of children with serious disabilities. Common law couples will also enjoy the various rights provided to married couples. Time off for breastfeeding may be accumulated in the hours pool arrangements.
Commentary
The SEAT agreement includes interesting new features and reflects a process of modernisation, It may act as a reference point for companies in motor manufacturing and elsewhere. The parties have managed to overcome the conflictual stage of bargaining to make a five-year commitment to stable industrial relations in a sector with an excess production capacity and uncertain demand. Another new feature is the introduction of work groups that adjust the work according to management by objectives. The agreement also includes the idea of 'flexicurity', with clauses on preserving employment security and competitiveness in exchange for flexibilisation of working time through pools of hours that reduce labour costs and production costs. Finally, the deal reflects changes in the composition of families and favours work-life balance. (Antonio Martín Artiles, Grup QUIT-UAB)
Nadácia Eurofound navrhuje citovať túto publikáciu takto.
Eurofound (2004), Ground-breaking agreement signed at SEAT, article.
