The company saw stock declines after wage agreement news
The Inditex group, which includes Zara, Lefties, and Pull&Shop, was affected by a notable shift in labor talks as a wage increase agreement was finalized with the dominant unions in Spain. This extensive store network across the country is included in the settlement, which was confirmed on a Saturday following the negotiations.
A CGT representative explained at a press conference that the improved compensation package was approved by the company after a comprehensive review of conditions across various regions. The decision effectively halted planned strikes and rallies that had been scheduled to take place across Spain.
According to the union spokesperson, the data supported the suspension of the strike and highlighted a substantial raise resulting from weeks of sustained effort. The message from the representative emphasized that the move does not erase the broader conflict. The union intends to reassess the situation when payroll improvements become clearly evident in the next cycle.
The CGT stance follows an agreement between Inditex and the company happiness unions, CCOO and UGT, which establishes uniform wages for all employees in the group stores across Spain. The compensation will range from 18,000 to 24,500 euros gross per year.
The collective agreement translates into an average salary increase of between 20 and 25 percent, representing calculations for roughly 80 percent of the group store workforce that includes brands such as Zara, Pull&Bear, Massimo Dutti, Bershka, Stradivarius, Oysho, and Zara Home. These figures were provided to EFE by the signatory associations.
The company fell 4.58% in the stock market
On the trading floor, Inditex shares closed the week down by 4.58 percent. The decline weighed on the Ibex 35 index as the market reacted to the wage agreement, with the stock trading around 27.70 euros by the close of business. The move reflected investor sentiment in response to the updated compensation framework and the broader implications for store personnel across Spain. [Citation: EFE]