Internal restructuring
Centro; Castilla y León;
Location of affected unit(s)
Palencia and Valladolid
Manufacture For Transport Equipment
Manufacture Of Motor Vehicles, Trailers And Semi-Trailers
29.1 - Manufacture of motor vehicles
European Globalisation Fund (EGF)
Year: 2007, Case number: 2

1,000 - 1,300 jobs
Number of planned job losses
Job loss
Announcement Date
15 November 2006
Employment effect (start)
1 January 2007
Foreseen end date
31 March 2008


Renault, the French automobile manufacturer, announced on 15 November 2006 that it is to cut down production in the three factories in Spain. One in Palencia, with 2,476 employees, and two in Valladolid, one with 3,204 workers and another with 1,537- due to a reduction in sales and the termination of the Mégane model line of production. As a result, 1,300 employees will take turns to be in temporary suspension of employment for one year and a half starting in January 2007. The company expects to have all the employees back at work by the middle of 2008, when the new version of Megane will start to be manufactured. The company and the trade unions held a meeting on 20 November 2006. The trade unions stated their concerns and announced that they will negotiate and try that these measures are not carried out in Valladolid. Renault currently employs a workforce of around 10,900 employees in Spain. The company and the trade unions reached an agreement and will negotiate the redundancy procedure (that will affect 1,300 employees that will lose their contract for certain periods of time by turns) along with the collective agreement. In December 2006 and due to the 'mediocre results obtained by these manufacturing plants' Renault introduced new job measures to smooth the possible consequences on the workforce. Of the total 1,300 jobs subject to the collectively agreed early temporary suspension of employment Renault is offering early retirement to 1,000 of those aged 60 or more. This Early Retirement Programme will be executed from January 2007 up until March 2008. According to Renault's Press Office almost 90% of the possible early retirements have agreed to enter that programme and, as a consequence, the "work in turns" regulation is only affecting 50 of their workers.


  • 16 November 2006: Expansión
  • 20 November 2006: El periódico
  • 10 November 2006: El periódico mediterraneo
  • 30 November 2006: El País


Eurofound (2006), Renault, Internal restructuring in Spain, factsheet number 64478, European Restructuring Monitor. Dublin, https://restructuringeventsprod.azurewebsites.net/restructuring-events/detail/64478.