Inditex, the Spanish fashion conglomerate that owns brands such as Zara and Massimo Dutti, has reached a “historic” agreement with the UGT and CCOO unions to establish a minimum wage in its stores that will affect more than 30,000 workers in Spain. This agreement, which is estimated to have an impact of around 100 million euros a year for the company, has been described as “complicated” but also as a breakthrough for the workers and for the company.
The agreement was reached after more than 10 hours of negotiation, involving representatives of Inditex, the unions, and Sagardoy Abogados, a law firm specializing in labor law that has advised Inditex on issues related to store takeovers and, in this case, also on the resolution of a labor dispute that had dragged on for more than 3 months and had led to a “massive” strike.
The agreement establishes a minimum wage table with four tranches, which will apply to all wage scales in Zara, Massimo Dutti, Oysho, Zara Home, Stradivarius, Pull & Bear, and Bershka stores. Salaries have been set at a minimum of 18,000 euros for the lowest category, which represents 19% above the minimum interprofessional wage (SMI) in Spain, and reach up to 24,500 euros for the highest category. In addition, store workers’ salaries are made up of a fixed and a variable component, both of which are improved by this agreement.
It is estimated that the wage improvement will mean an annual outlay for Inditex of around 120 million euros, which represents 3.7% of the profit the company recorded in 2021. According to union sources, the average salary increase is 20%, and in some territories with lower salaries, the increase can be up to 40%, which means an increase of more than 6,000 euros per year.
Sagardoy Abogados has been advising Inditex for almost a decade, and in this particular case, its role has been fundamental in reaching an agreement that has been considered historic by all parties involved. The firm’s managing partner, Martín Godino, is one of Spain’s leading labor lawyers and has been recognized internationally for his work.
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