Production at Panrico's facilities in Catalonia ground to a halt yesterday (8 February), after around 800 workers went on strike over pay and the Spanish baker's plans to transfer a production line to Milan.

Workers at Panrico's Santa Perpetua Panrico of Mogoda, Barcelona, facility started industrial action on Saturday to protest against the relocation of a production line for Panrico's Bollycao Dokyo snacks and pay cuts.

According to the Confederación General del Trabajo (CGT), the union representing the workers, Panrico had agreed in 2007 not to transfer production away from this site.

Additionally, a spokesperson for the union told just-food, the company has also reduced wages by about 0.6%.

"We fear that they are beginning to move production away from Santa Perpètua Mogoda and are planning a big reduction of workers there," the CGT spokesperson told just-food.

According to the CGT, warehouse distribution workers in Barcelona, Tarragona, Lleida and Girona joined the strike yesterday, preventing the transport of which is expected to last seven days.

Panrico was unavailable for comment as just-food went to press.

However, it is understood the company has been unwilling to enter negotiations with the union after two failed mediations by the Spanish Labour Department.