Renault reaches labour deal with Spanish unions, unlocking five new electrified models for Palencia and Valladolid plants

A deal under pressure

Renault Spain and the unions UGT, CCOO, and SCP reached a pre-agreement on a new collective bargaining agreement for 2026–2028 on Tuesday, ending weeks of tense negotiations that had threatened the industrial future of the company's Spanish plants. The breakthrough came during a meeting at the Ministry of Industry, convened by Minister Jordi Hereu to unblock talks that had been stalled since 7 May. The pact averts the strikes that had begun with one-hour stoppages the previous Friday, called by all five unions on the negotiating committee.

The agreement secures the conditions necessary for the future of the Valladolid plant and a paradigm shift at the Palencia factory with the award of the new RGEV Medium 2.0 electric platform.

What the factories get

The pre-agreement explicitly links labour peace to product allocation. Renault had warned that without a deal, Spanish factories would lose their "preferred" status for new models, facing production declines and no employment guarantees. Under the new terms, the Palencia plant will receive three new vehicles, while Valladolid will continue producing two "long life" hybrid models. Crucially, the deal brings the RGEV Medium 2.0 platform to Palencia, marking the first time in Renault Group's 75-year history in Spain that it will manufacture electric vehicles in the country.

Wage terms and conditions

The salary framework ties increases to inflation: IPC plus one percentage point for 2026, IPC alone for 2027, and IPC plus 0.63 percent for 2028. Workers will also receive one-off gross payments of €400 in both 2026 and 2027, and €200 in 2028, with an additional annual payment of €145 each September. Other gains include a 15 percent increase in overtime pay, a commitment to convert 300 temporary contracts to permanent positions over the agreement's life, a minimum annual investment of €300,000 for factory improvements, a cap of 14 Saturdays per shift per year, and a new digital disconnection policy to be agreed during 2026.

Union divisions

Not all unions backed the deal. While UGT, CCOO, and SCP signed on, both CGT and CSIF rejected the proposal as insufficient. CSIF argued the agreement fails to recover purchasing power lost during the wage freezes of 2021 and 2022, and does not address what it describes as excessive work pace burdens. The split reflects the high-stakes choice unions faced: accept a framework of wage moderation and flexibility, or risk losing the electric vehicle allocation entirely.

Leadership change at the top

The agreement was sealed on the same day that Josep Maria Recasens, president of Renault Spain, was announced as the new CEO of defence and technology company Indra. Recasens departs having steered the negotiations to a conclusion that locks in a new industrial plan for the Spanish operations. His move comes as Renault Group itself reported losses of €10.9 billion in 2025, linked to its exit from Nissan, underscoring the financial pressures behind the drive to secure competitive labour conditions at key European plants.