Type
Internal restructuring
Country
Spain
Region
Este; Cataluña; Barcelona
Location of affected unit(s)
Martorell
Sector
Manufacturing
Manufacture For Transport Equipment
Manufacture Of Motor Vehicles, Trailers And Semi-Trailers
29.1 - Manufacture of motor vehicles

1,330 - 1,800 jobs
Number of planned job losses
Job loss
Announcement Date
9 March 2022
Employment effect (start)
Foreseen end date
31 March 2026

Description

SEAT, the Spanish car manufacturer belonging to the Volkswagen Group, has confirmed a labour surplus of up to 1,800 workers at its Barcelona facilities until 2026. Up to date (March 2022), it is unknown when the job losses will be implemented. It is expected that up to 67% of the job redundancies will relate to staff linked to production activities, whereas the remaining 33% will relate to other enterprise units. 

The job reduction is explained by two interlinked reasons: On the one hand, the manufacturing of an electrical vehicle already announced for 2025 (resulting in an expected reduced workload per vehicle) and, on the other hand, the associated reduction in the volume of gearboxes produced at SEAT Components. This case of restructuring is linked to the transition to carbon neutral economy.

In addition to the direct foreseen job losses of 1,800 jobs, SEAT foresees additional job loss of 1000 indirect jobs.

Updated 06/05/2022: The management of SEAT car manufacturer  has presented to workers' representatives a plan to early retire 1,130 employees (out of a workforce of approximately 15,000 people in Catalonia), due to the surplus of workers that the company will have with the arrival of the electric vehicle. The measure has been well received by the Trade Unions. The proposal, which will be voluntary, would affect direct employees from the age of 61 and indirect employees from the age of 62, where Unions want to negotiate this latter element. The proposal, which has been presented by the company in the framework of the negotiations of the new collective agreement for the period 2022/2026, includes not only workers in the production area, but also in other areas of SEAT 

Updated 16/05/2022: The management of SEAT car manufacturer has proposed to Union representatives within the framework of the negotiations for the company's new collective bargaining agreement that all employees over 61 years old may voluntarily join the company's early retirement plan, including office workers (indirect workers). With the new proposal, 200 more employees (indirect workers) will be able to join the voluntary early retirement programme, up to a total of 1,330 workers (out of a total workforce of 15,000 people in Catalonia). SEAT's final aim is to reduce its workforce with this type of voluntary measures, in order to cope with the workload reduction foreseen from the arrival of the electric car at SEAT's facilities in 2025 (expected).

Updated 08/06/2022: The management of Seat has reached a preliminary agreement with the trade unions to adapt the company's workforce to the reduced workload that the future production of electric vehicles at the Martorell plant (in Catalonia) will entail. Seat and the unions have already drawn up a roadmap, and the new collective agreement (that will absorb the surplus workforce derived from the production of electric vehicles) will be signed before the summer holidays. It has been agreed that 1,330 people will leave through early retirement (see previous updates). Also, SEAT and employee representatives have agreed that the Seat Components Plant located in El Prat de Llobregat (Barcelona) will not be closed and half of the current workforce (approximately 1,000 persons) will keep their jobs due to a reorganisation of work. In this way, and adding the possible workforce transfers to the battery plant that the Volkswagen Group will have operational in Sagunto (Valencia) in 2026, the 2,800 surplus workforce to be generated by the arrival of the electric car at Seat Martorell from 2025 onwards would be absorbed in this period.


Sources

Citation

Eurofound (2022), SEAT, Internal restructuring in Spain, factsheet number 106441, European Restructuring Monitor. Dublin, https://restructuringeventsprod.azurewebsites.net/restructuring-events/detail/106441.