Spanish baker Panrico has secured union backing for cuts to pay and jobs – although its initial plans have been watered down.
Under a “preliminary agreement” with the UGT union, Panrico will lay off 745 jobs over the next three years and reduce salaries by a maximum of 18% for the last three months of 2013 – and 15% each year up until 2016. A second union representing staff at Panrico, the CCOO, did not sign the deal.
Go deeper with GlobalData
Panrico, which has run up losses of EUR700m in the last four years, had wanted to axe 1,900 jobs and cut wages by a third but scaled back the plans amid union opposition. Industrial action, called in protest at Panrico’s move in September to suspend the pay of over 4,000 staff, hit the business, including a strike at a factory in Barcelona.
Industry watchers believe Panrico has suffered as Spanish consumers, hit by the economic crisis in the country, have sought cheaper products. Own label has made inroads into the categories in which the Donettes and Qe! brand owner operates. Market experts also argue Panrico has not reacted quickly enough to these tougher trading conditions.
Panrico, owned by private-equity firm Oaktree Capital Management, said the revised plans would be put to a union vote in the coming days.
See Also:
How well do you really know your competitors?
Access the most comprehensive Company Profiles on the market, powered by GlobalData. Save hours of research. Gain competitive edge.
Thank you!
Your download email will arrive shortly
Not ready to buy yet? Download a free sample
We are confident about the unique quality of our Company Profiles. However, we want you to make the most beneficial decision for your business, so we offer a free sample that you can download by submitting the below form
By GlobalData
