Mahle workers and management agree compensation worth €37 million

Workers and management at the factory of vehicle piston manufacturer Mahle have agreed on compensation packages for when the plant permanently closes. 

The deal is worth roughly €37 million and will be split between the Vilanova i la Geltrú plant’s 343 workers when the factory closes for good at the end of this month. 

Both parties came to the agreement after 2 am after a marathon day of negotiations. They will meet again to work out how to distribute the funds among the workers based on age groups. 

Afterwards, the final package will still have to be confirmed with a vote from the workers. 

Plant closure

The German firm announced in November they would be closing the plant in the Garraf county due to "a continued fall in demand and the ever-growing price competition." 

The company says that these circumstances lead to the plant "working well below its normal capacity," and argues that production is no longer possible in Vilanova i la Geltrú. 

"This measure is resulting from the transformation of the automotive industry towards a carbon zero mobility and a clear trend to abandon combustion engines." 

Mahle says the decision does not affect its other plants in Spain, including that of Montblanc and L'Espluga de Francolí.