Redundancy talks between unions and Nissan break down
Workers' representatives demand vehicle manufacturer pledge no further layoffs until 2022 and a larger pay rise than that offered by the firm
Workers' representatives demand vehicle manufacturer pledge no further layoffs until 2022 and a larger pay rise than that offered by the firm
No deal with unions after four meetings; promised investment of 70 million euro up in the air
Union sources say up to 500 jobs could go through early retirements, with firm due to make a statement on Tuesday
Japanese firm will stop making two models but this will not affect current workforce, company says
The 38th edition of the Barcelona International Motor Show (SIAB) will be held between 9 and 17 May at the Montjuïc venue of the Catalan capital's trade fair. This year, the event will host at least 38 brands and others could be added in the following weeks. This is the biggest number since the economic crisis started. According to Mario Armero, ANFAC Executive Vice President, "the show coincides with a clear recovery of the sector, where 2-digit growth rates have been registered in sales, production and exports volumes". Organised by Fira de Barcelona, SIAB is the only motor show in Spain recognised by the International Organisation of Motor Vehicle Manufacturers. The coming edition will also coincide with the Spanish Formula 1 Grand Prix, transforming the Catalan city into the world's motor capital for a few days.
The factory that the Japanese car multinational has in Barcelona will be working 24 hours a day and 7 days a week for the first time in its 30 years of existence in order to produce the Pulsar saloon car and the NV200 van. In addition, it will hire 686 new temporary workers to deal with this production increase. As from the 20th of October, Nissan will hire 86 new staff that will strengthen the current night shift on week days, which will be covered by 500 workers in total. Furthermore in early January, 600 additional staff will be hired to work on the weekends until later March. Nissan decided to allocate the production of its Pulsar saloon car to Barcelona in February 2013, after the company and trade unions reached an agreement to improve competitiveness. Furthermore, in Barcelona in May 2014, it started to assemble its first electric van model.
At a conference in Brussels on Wednesday, Barcelona presented itself as a “pioneering” city to accommodate electric vehicles. Coinciding with the European Energy Week, the Catalan delegation to the European Union in collaboration with Renault-Nissan organized a conference on the promotion of electric mobility and smart cities, entitled 'The Liveable City’. "Everything is ready, what is missing is that people just have to make the step to use electric vehicles”, the Manager of Infrastructure and Electric Mobility of the City of Barcelona, Manuel Valdés, told CNA. According to the Communications Director of Nissan Iberia, Francesc Corberó, the city "is not only ready, but its whole mindset is totally focused on this challenge".
This weekend the Formula 1 World Championship comes to Catalonia once again thanks to a long tradition which blends the motor industry and competition. Catalonia has several industries related to cars and motorbikes. Aside from SEAT, Nissan, Honda and Rieju are important factories that supply components worldwide. Catalonia plays host to a packed motor sports calendar. The Formula 1 Grand Prix, the GP Motorbike Grand Prix, the World Rally Championship all take place in Catalonia among other endurance series, classic races and indoor or outdoor motorbikes championships. Moreover, Catalan drivers are competing in a lot of international categories. For instance, last year the three Motorcycle World Champions – Marc Márquez, Pol Espargaró and Maverick Viñales - were all Catalans.
The Japanese car manufacturer started production of its new e-NV200 van, the electric version of the existing NV200, on Monday. The new model will be Nissan’s first van to be 100% electric. The vehicle will be exclusively built in the company’s plant located in Barcelona’s Zona Franca industrial district, which is very close to the city’s sea port, one of Europe’s main gateways for imports and exports. The production of the new e-NV200 has meant the creation of 700 new jobs, according to Nissan’s CEO and Vice President for Industrial Operations in Spain, Frank Torres. Barcelona’s City Council has reached an agreement with the car manufacturer to promote the use of this van among the Catalan capital’s taxi fleet and distributors operating in Mercabarna, the city’s wholesale market.
Greater Barcelona-based car manufacturer Seat has hired 450 new workers to cover an expected increase in production. The new employees will join the workforce at the Martorell factory to aid the production of two of its most popular car models, the Ibiza and the Leon. Seat also announced an increase in overall production during a strong performance in 2013, which saw its highest production rates for 5 years. Besides, the Japanese Nissan recently extended the contract to 308 temporary workers and hired additional 20 people in its Barcelona factory. Last November, Nissan launched a shorter night shift to produce the Primastar X83 van, which was extended in February in order to increase production.
Car dealers are satisfied with this year’s Motor Show as several brands posted solid sales balances. However, some visitors were disappointed as major car manufacturers were absent, attendants were not very enthusiastic about the worldwide premiers and there was a lack of glamour. Driving simulators and luxury-car payment tours were the main alternative for those who wanted something other than the regular exhibition. The organisers are optimistic and aim to restore the splendour of past shows as the economic situation improves and Barcelona becomes a more important city for motor events.
The President of the Catalan Government announced the initiative which will aim to develop an industry and knowledge cluster of the automation sector. The cluster would profit from the multinational companies based in Catalonia, the country’s industrial sector traditionally linked to cars and bikes, the export infrastructures, Barcelona’s car fair, the Formula-1 racing circuit and the innovation, design and education centres. The new cluster is fully supported by the Catalan Government, since automation is one of the main engines driving Catalonia’s economy. It aims to strengthen the sector’s competitiveness, foster cooperation between companies, facilitate the education and training of professionals, develop innovation and implement strategic agendas such as sustainable mobility and electrical vehicles.
After having reached an agreement on the measures to increase competitiveness with the trade unions last week, the Japanese multinational car manufacturer finally confirmed on Monday that its Barcelona plant will be building Nissan’s new saloon car model as of July 2014. The decision will bring in a direct investment of €130 million, creating 1,000 direct positions in the Nissan factory and 3,000 indirect jobs in the Catalan automobile parts supply industry. After seven months of talks, including a critical period when Barcelona seemed to be out of the race, the Nissan managers and trade unions finally reached an agreement early last week, based on a 20% salary reduction for new workers and guaranteeing the oldest jobs. The President of the Catalan Government, Artur Mas, emphasised that Nissan’s announcement confirms that Catalonia is “an attractive and reliable country”.
After having ruled out Barcelona because unions refused to sign Nissan’s final offer of modifying working conditions and reducing salaries in order to increase competitiveness, the unions made an about-turn. With the Catalan Government’s mediation, the main union signed Nissan’s final offer and the two others (CCOO and UGT) presented their own cost reduction plan, accepting almost all of the company’s requirements, including the dual salary scale. After a day-long negotiation between the Catalan Business Ministry and the unions, CCOO and UGT agreed to sign Nissan’s agreement if the company guaranteed the jobs of the existing workers. Nissan has accepted and now the European branch will put its Barcelona plant forward to the Japanese headquarters, which will soon allocate the new car production.
After Nissan’s announcement that Barcelona would not build its new car model, the Catalan Government and the trade unions have been trying to persuade the Japanese company to change its mind. The six-month negotiation was derailed ten days ago, when Nissan considered the talks to be over as the unions refused to sign its final proposal. However, the company has not announced where the new car will be built yet. The union representing the majority of the Catalan plant’s workers has already signed Nissan’s proposal, but the unions CCOO and UGT – the main ones in Catalonia – have insisted on presenting their own proposal, based on Nissan’s need to make reductions of €30 million. A few days ago, Nissan stated that it was too late, but now it says it will study the union’s proposal to look at the details.