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Spain – SEAT cuts costs, 400 temps lose jobs

22 January 2013

Spanish car manufacturer SEAT yesterday announced hundreds of job cuts, with the firm letting go 400 temporary agency workers in March this year. Local media reports say that the company has come under pressure as sales figures have deteriorated and SEAT now plans to close a production line for its flagship Ibiza car.

The firm spoke to unions on Monday to inform them of a cost-cutting plan, which may also include permanent staff dismissals. The firm will not renew the contract of several hundred agency workers at a plant in Martorell, Catalonia.

The European auto industry relies heavily on agency workers to cope with increased demand during peak seasons. Other carmakers in Europe have seen weak demand with Honda last week announcing that 300 agency workers would lose their jobs at one of its UK plants. PSA Peugeot Citroen, Fiat SpA and Audi are also among the car manufacturers which recently let go thousands of workers.

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