Update on Delphi Packard Spain

IMF News17 February 2000

The one-week strike called by IMF affiliates in Spain has been cancelled in order to continue talks at the negotiating table.

SPAIN: Late on February 10, following a week of meetings and intense discussion regarding Delphi Packard's decision to restructure its operations in Spain and transfer production to Morocco and Poland, the one-week strike planned by FM/CC.OO. and UGT Metal, to begin on February 14, was called off.

Workers' representatives reached an agreement with the company to start negotiating a plan which will guarantee Delphi Packard's industrial activity in Spain. If these negotiations do not produce the desired results, the unions say that it may be necessary to increase pressure again on the company.

Delphi Packard has a total workforce of 3,500 in Spain. It produces electrical auto parts and is making very healthy annual profits there. The company's objective in transferring production out of Spain is to cut costs by setting up in countries with lower wage-costs.

The IMF wishes to thank all affiliates who have demonstrated their support and encouragement for their Spanish colleagues by sending messages of solidarity to UGT Metal and FM/CC.OO. The outcome of their negotiations will be published when available.