There is movement in the Mercedes Vitoria. After two months of negotiations for the 2025 calendar, little by little the company and the unions are starting to show their cards. As EL CORREO has learned, Bernd Krottmayer’s management expects an exact production figure for next year: 124,634 vans. With this number, Avenida de Los Huetos would launch fewer models from its warehouses than at any time in the last five years. Production would be even lower than that of the 2020 “pandemic”, in which 125,000 units were produced.
To do this, the company has put on the committee’s table a production system that some suppliers already manage. In that calendar, the work would be done thirty of the year’s 52 Saturdays, although those days wouldn’t be activated until March 8, 2025. From there it would extend well into the year until December 13. However, the Saturdays of Holy Week and Easter (19 and 26 April), the last of July (the 26th), all of August, the first Saturday of September (the 4th) and November 1st, would be something that suggests this there could be five weeks of vacation on the Avenida de Los Huetos.
According to sources consulted by this newspaper, the company would also be willing to review the issue of payroll. From the beginning, the rotation for a few days of rest in the month of March and the repetition of the same dynamic in April of the following year was open to workers.
New meeting
These offers have caused movement from one side to the other. On the one hand, the ELA union yesterday sent a statement to its members in which it assures that the situation is “further and further from the agreement” because the company does not accept or reduces some of its demands in this sense. Igor Guevara’s team recalls that there are 300 workers in production on temporary contracts who could be sidelined.
More optimistic was Comisiones Obreras, who also informed his supporters on the status of negotiations with the company. «In the meeting with the company, after more than 3 hours of negotiation, a definitive offer was received from the company which we must evaluate […]. It includes many of our proposals, we will inform you of everything when we have finished the talks”, reads the letter sent by the office led by Roberto Pastore.
The unions have accepted the company’s challenge and today they will sit at the table again, for the tenth time, to try to reach an agreement. The experience of the pact to close these last months of 2024 or the spring agreement to avoid the ERTE are successful precedents, even if this time the division within the committee is greater.
In recent months, the European automotive crisis has made itself felt in the Basque economy and, in particular, in Alava, dedicated like few others to this sector. The cancellations of events on Avenida de Los Huetos itself are just the tip of an iceberg that is best seen if you look at the component manufacturers.
For example, two buttons. Gestamp, one of the main manufacturers of this automotive subsector, slumped its profits by 43%, according to results presented to the markets on Tuesday. The day before, CIE Automotive presented its accounts with a profit up 2.1% on the year, but with a 0.3% drop in profit in the third quarter. Throughout the summer, Jesús María Herrera’s company had a turnover of 950 million, 1.3% less than in the same period of 2023.
To this we must add another derivative: the complex situation of Michelin. The French group’s decision to close two factories in its home country adds to the six closures already undertaken in 2023: three factories in Germany, two in China and one in Poland. Part of the work of one of the French centers, that of Vannes, will arrive in Vitoria.
Interview between Time.news Editor and Labour Relations Expert
Editor: Good afternoon, and welcome to Time.news. Today, we’re diving deep into the ongoing negotiations at the Mercedes Vitoria plant in Spain, particularly as they pertain to the production forecast for 2025. We have with us Dr. Elena Ruiz, a labour relations expert who has been closely following this situation. Dr. Ruiz, thanks for joining us.
Dr. Ruiz: Thank you for having me. It’s a pleasure to discuss such an important topic.
Editor: To start off, the management at Mercedes Vitoria has set a projected production target of 124,634 vans for next year. This figure is notably lower than the production levels seen in the last five years. What impact do you think this decline in production might have on the workforce and the broader regional economy?
Dr. Ruiz: That’s a critical question. A reduction in production figures generally suggests a need for streamlining operations, which often translates to job insecurity for employees. Given that there are currently 300 workers on temporary contracts, this could mean potential layoffs or more precarious employment for those individuals. For the broader Spanish economy, particularly in the Basque region where the plant is located, this decrease could lead to less spending power and reduced economic activity, affecting local businesses as well.
Editor: Indeed, it seems that the negotiations are quite tense. The ELA union has expressed concerns that the situation is “further and further from the agreement” due to the management’s reluctance to meet their demands. How crucial are these negotiations for both the workers and the company?
Dr. Ruiz: These negotiations are pivotal. For the workers, reaching a fair agreement is essential to ensure job security, reasonable working conditions, and adequate compensation. For the company, maintaining a productive and satisfied workforce is equally important. Strikes or prolonged disputes can lead to production delays, which ultimately hurt the company’s bottom line. Thus, there needs to be a collaborative approach to mend this rift.
Editor: You mentioned the collaborative approach, and this relates to the recent proposal by management to review payroll and implement a production system that allows for more time off. Comisiones Obreras seems to view this offer positively. What do you make of these proposals?
Dr. Ruiz: From a labour relations perspective, any proposal that includes work-life balance improvements is generally a step in the right direction. Allowing employees to have more vacation time, particularly during crucial periods like Holy Week and August, can alleviate stress and boost morale. However, it’s essential that these proposals also adequately address salary concerns and job security, especially for those on temporary contracts. If workers feel their livelihoods are at stake, positive changes in working hours may not suffice.
Editor: That’s a very fair point. With the extension of work on selected Saturdays and adjustments in payroll, how do you believe these measures will affect employee sentiment in the long run?
Dr. Ruiz: If executed fairly and transparently, these measures could foster goodwill among employees and build trust in the management. However, if employees feel these changes are merely a means to cut costs without addressing their needs, resentment may grow. It’s about the company demonstrating that they value their workers’ contributions, not just as numbers on a production line but as integral parts of the business.
Editor: As we look ahead to the next rounds of negotiations, what would you recommend both the workers and management focus on in order to reach a sustainable agreement?
Dr. Ruiz: Open communication and empathy must be at the forefront. Both sides need to listen to each other’s challenges. Management should be transparent about the rationale behind production cuts, while unions must be willing to negotiate terms that can allow the company to remain competitive. Alongside this, maintaining flexibility will be crucial—navigating through these uncertainties requires a willingness to adapt.
Editor: Thank you, Dr. Ruiz, for your insights. It’s clear that the path ahead will require careful consideration and collaboration between both sides, particularly in such a pivotal industry. We’ll be keeping a close eye on the developments as they unfold.
Dr. Ruiz: Thank you for having me. I’m looking forward to seeing how this situation evolves.
Editor: And thank you to our audience for tuning in to this critical discussion. Stay with us for more updates on the negotiations at Mercedes Vitoria and other significant labour developments around the world.
