Izar reaches agreement with unions

Spanish shipyard workers and employers reached a basic agreement yesterday to save the jobs of 10,700 workers. The future of 10 yards controlled by Izar shipyards, owned by government industrial holding company SEPI, has hung in the balance amid European Union demands that Izar repays 300 million euros ($372.8 million) of aid which Brussels says breached EU competition rules. The agreement reached involves the state maintaining a 70% capital stake in civilian yards initially earmarked for privatisation. According to the draft agreement, SEPI is due to maintain a 49% capital stake in the four civilian yards with public financial bodies such as savings banks holding a 21% stake. The remaining 30% would be in the hands of private investors.

Both sides have also agreed to create a public holding company linking both the civilian and military yards, with the exception of one northwestern site although the exact nature of the holding had still to be ascertained.

Unions are opposed to splitting the civilian and military use sites, the latter being more profitable, as foreseen by the initial restructuring plan. SEPI and the unions are still trying to make headway on plans to bring new work to Izar’s civilian yards which have had no new orders in the past three years.

In addition to its problems with Brussels, Izar faces the prospect of seeing the EC declare illegal a further Spanish government aid package worth about 550 million euros, according to a spokesman for EU Competition Commissioner Mario Monti.