Strike Commences at Iberdrola for the First Time, with Approximately 80% Participation as Per Trade Unions' Reports
A Historic Murmur for Change: The trade unions, UGT, CC.OO., and ELA, have ignited a historical fire within Iberdrola's workforce, initiating a labor dispute that has garnered the support of an astounding 80% of its employees. This confrontation, the first of its kind in the company's over a century-long existence, has involved a colossal 9,500 workers spread across 400 work centers in Spain.
The central issue, the degradation of purchasing power among the employees—a problem exacerbated by the significant disparity between wage growth and inflation rates—has evoked a passionate response from the labor force. They took to the streets on this particular day, escalating their call for change.
In Bilbao, the rallying cry of striking Iberdrola workers from Bizkaia, Gipuzkoa, Álava, and beyond resounded in front of the Iberdrola Tower, the company's headquarters. Similar protests were echoed throughout Spain, with the collective turnout mirroring the 80% figure in Euskadi and Navarra, according to the organizers.
However, the implementation of "minimum services" mandated by the Government, deemed essential by the Administration, restricted the participation of many workers. This minority, accounting for nearly 20%, were unable to join the strike owing to their crucial roles in keeping operations running. Variations in participation were observed across regions, with some, such as Castilla-La Mancha or Navarra, experiencing a turnout of nearly 90%.
The Administration continues to view Iberdrola as an essential service company, a fact that has only become more pronounced in the wake of the historic blackout that struck the Peninsula on April 28th.
A Dramatic Impact:
Ismael Manzanal, the Trade Union Action secretary for UGT in Iberdrola, succinctly described the impact of the strike as "massive." In his estimation, this impact was almost universal, especially in smaller work centers. Outside the Iberdrola Tower, he conveyed his frustration that, after 124 years of the company's history, a strike was necessary merely to safeguard purchasing power—a demand that the company seemingly refuses to acknowledge.
Manzanal expressed disbelief that a company that rakes in a profit of 5.6 billion euros, with aspirations to hit 8 billion this year, offers salary increases that barely keep pace with inflation. His criticism extended to what he perceived as Iberdrola's focus on marketing-centric human resource policies, urging the company to "come down to earth" and confront the reality of its labor force's demands.
These sentiments were echoed by the representative of CC.OO., Rubén Sainz. He pointed out that Iberdrola is often portrayed as the dream employer in the Basque Country, a fact underscored by the thousands of employees present in the streets.
The representatives of ELA, the majority union in the Basque Country and Navarre, where around 1,800 workers operate, denounced the intransigence of Iberdrola's management in the negotiations for the collective agreement. They highlighted the company's reluctance to acknowledge the 16.5% loss in purchasing power over the past four years, and its refusal to tie wage increases to inflation to prevent further erosion. Despite offering maximum wage increases of 2%, the company also hesitated to guarantee wage growth for the next four years.
With the negotiating table meeting scheduled for the following day, June 10th, the unions awaited Iberdrola's response. However, they hinted at the possibility of more strike days if the situation did not improve. The ELA delegate issued a stark warning: "If the company does not want to give in, does not want to negotiate in a real way, and does not want to attend to our minimum demands, there will be more mobilizations, more strikes, and more struggle."
A Summit with the Company Director:
Iberdrola, the second-largest company in the IBEX 35 in terms of market capitalization, maintains a respectable public image. However, López Navarro, the general secretary of UGT in Iberdrola, has highlighted the company's prolonged struggle with wage declines in the fixed portion and hiring issues, such as the implementation of equality plans or the employment of people with disabilities. The company has also resorted to outsourcing smaller companies to some extent, though efforts to curb this practice have been successful so far. The workforce once exceeded the 14,000 mark, but this number has deceased.
López Navarro confirmed that the executive director of the company, Mario Ruiz-Tagle, has declined to meet with them thus far. However, they are scheduled to meet in the coming week, separate from the negotiating table. According to López Navarro, the outcome of these negotiations will dictate whether or not another strike needs to be called.
In light of the labor dispute, Ismael Manzanal, UGT's Trade Union Action secretary, emphasized the striking workers' demand for Iberdrola to address the significant erosion of purchasing power, despite the company's profit of 5.6 billion euros and aspirations to reach 8 billion this year. Meanwhile, the energy industry perceived the situation as a potential disruptor, given the industry's strategic role in Spain's finance sector and overall business landscape.
