Three-year deals for Spanish metalworkers

Unions have reached agreements covering the metalworking industry in three provinces of Catalonia, one of the most industrialised regions of Spain. The agreements, which in total cover 160,000 employees and run for three years backdated to January 2000, provide for a 3.0% pay increase in the current year (1.0% above the forecast rate of inflation) and increases 0.5% above the inflation forecast for 2001 and 2002. (In Llieda the smallest of the three provinces the increase in 2000 is 1.5% above the inflation forecast.)

With recent experience of inflation running ahead of the forecast the unions have ensured that any loss will be made up, but this will be through a higher settlement in the following year rather than retrospective payments. Inflation is currently 2.9% (March), although in collective bargaining in Spain the key figures is the January to January change. Annual working time is also being cut by 12 hours (16 in Llieda), although only in the third year of the agreement. The agreement also provides the option for overtime to be taken as free time rather than cash.