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Spain's DIA Reaches Agreement On Staff Restructuring Deal With Unions

Published on Mar 27 2019 1:30 PM in Retail tagged: Spain / DIA Group / Restructuring / Trade Unions

Spain's DIA Reaches Agreement On Staff Restructuring Deal With Unions

Spanish retailer DIA Group announced that it has reached a staff restructuring agreement with the majority of trade union representatives from Spanish unions Fetico and UGT.

This arrangement is part of the company's Strategic Plan 2018 – 2020, which is 'focused on the customer and on a management model that revitalises the store network, both owned and franchised.' The plan will also promote private-label products and fresh produce.

The deal will affect 1,604 employees of a staff of more than 26,000. These include 201 office jobs, 308 warehouse positions, and 1,176 store roles. Forty employees will take early retirement, while 356 individuals may be relocated to other facilities, depending on issues such as staff performance and proximity of location, the retailer announced in a statement.

This new deal will affect 22% fewer employees – the initial agreement proposed would have involved 2,064 individuals. If relocations are implemented, 40% fewer employees will be affected by the revamped staff restructuring arrangement.

This process will also include the sale of 258 stores across Spain, and subrogation of employees will be dealt with on a case-by-case basis, DIA added.

Necessary For The Future

On the staff restructuring agreement, the retailer reported, 'DIA wants to thank all the parties involved in the process for their professionalism and goodwill, which has helped to reach an agreement that is necessary for the company’s viability and the future of more than 43,000 direct jobs across four countries (Spain, Portugal, Argentina, and Brazil).'

On 20 March, company shareholders voted to back a rescue plan for the chain, which booked heavy losses in 2017 and 2018. This vote makes it possible for Russian tycoon Mikhail Fridman's LetterOne (L1) investment fund to go forward with a takeover bid that it made last month.

The DIA Group currently has 3,474 owned and franchised stores in Spain.

© 2019 European Supermarket Magazine – your source for the latest retail news. Article by Karen Henderson. Click subscribe to sign up to ESM: European Supermarket Magazine.

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