Renault Reaches Landmark Union Deal Securing Future of Spanish Plants
Renault and Unions Secure New Agreement for Spanish Operations
Overview of the Preliminary Agreement
MADRID, May 27 (Reuters) - French carmaker Renault and trade unions reached a preliminary agreement late on Tuesday in Spain that secures the manufacturing of five new models at its Palencia and Valladolid plants along with 6,000 jobs, the auto company said.
Key Issues Addressed
• The agreement covered issues including wages, flexibility, employment and social aspects, for the period 2026 to 2028.
Job Security and Electric Vehicle Production
• In addition to securing more than 6,000 direct jobs in the coming years, the agreement will enable the production of electric vehicles in Spain.
Strategic Importance for Spain
Spain's Automotive Sector
• Spain is Europe's second-biggest carmaker and has sought to attract new investment in recent years by offering public aid as well as lower labour and energy costs compared to other European countries.
Future of Valladolid and Palencia Plants
Valladolid Plant
• The deal would secure the future of the Valladolid plant and mark a shift at the Palencia factory with the award of the new RGEV Medium 2.0 electric vehicle platform, which was unveiled in the futuREady strategic plan last March.
Palencia Factory and New EV Platform
• In line with terms presented at a meeting held on 7 May, the company included a cap on the number of Saturdays worked and agreed to develop a future protocol on temperature control and other improvements to working conditions.
Next Steps
Ratification Process
• The preliminary agreement now needs to be ratified by the various trade unions.
(Reporting by Jesús Aguado and Joan Faus; Editing by Elaine Hardcastle)