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

660 jobs
Number of planned job losses
Job loss
Announcement Date
4 November 2005
Employment effect (start)
Foreseen end date


The company Seat is specialised in the manufacture of motor vehicles and is owned by the German Volkswagen Group. After several negotiations with the labour representatives where no agreement was met, management has presented a job reduction plan on 4 November 2005 creating 1,346 redundancies out of 12,875 labour. Management said the decrease in sales forced the company to decrease its production capacity in its centres in Martorell and Zona Franca (Barcelona, Catalonien, Spain). The company will produce 390,000 units in 2005 whereas its optimal production capacity is of 516,000 units. The dismissed employees will receive a compensation of 20 pay days per year worked. The labour representatives have not accepted the measure and the regional authorities have offered to intermediate in order to reach an agreement with the company.

On 18 November 2005 a final agreement was reached with the intermediaries. The agreed measures include temporary work interruption for employees over 62. A compensation equalling to 100 % of their salary till the age of 65 will be offered. Some voluntary contract interruptions for a period of 2 to 5 years with a compensation of €6,000 euros per year, were also set.Other measures such as voluntary dismissals with a compensation of 45 days per year worked with a maximum of 42 months or of €78,000 concluded the agreement. On 16 december 2005 a final agreement between labour representatives and the management of the company has been reached. A total of 660 workers will be dismissed with incentivised measures and should receive a minimum of €12,000 or an indemnisation of 45 days per year worked. The redundants who will be rehired in the company after two years, will be indemnised with 20 days per year worked.


  • 16 December 2005: El País
  • 5 November 2005: El País
  • 19 November 2005: El País
  • 2 December 2005: El País


Eurofound (2005), Seat, Internal restructuring in Spain, factsheet number 62491, European Restructuring Monitor. Dublin, https://restructuringeventsprod.azurewebsites.net/restructuring-events/detail/62491.