Inditex, Zara's Spanish owner, faces workers' strike over demand for more pay

Inditex SA, the Spanish owner of the clothing brand Zara is currently facing two days of strikes in its region when the unions and management failed to reach a settlement. Spain is the largest market for Inditex.

Nearly 11 shops in the Galician province were closed on Thursday (Nov 24) as workers refusedto work. The strikes have affected Bershka, Stradivarius, Pull&Bear, Massimo Dutti and Oysho brands along with impacting the Black Friday sales, being one of the important days for retailers, Bloomberg reported.

The Confederacion Intersindical Galega union stated that nearly 44 stores across Inditex's brands including the Zara store are expected to close on Friday as a result of the strikes.

The strike demonstrates rising demands for salary rises from Spanish employees in the face of rising prices. The workers demanded a €440 ($458) salary raise.

Last week, Inditex met trade unions and maintained its request to boost monthly compensation by €182 ($189.8). After the negotiations collapsed, the retailer negotiated an agreement with UGT and CCOO, two additional unions, providing a one-time incentive of up to €1,000 ($1,042) for workers to stores that meet their sales targets.

The CIG and local UGT members have chosen to continue the strikes.

Despite the surging cost-of-living problems, the Spanish company was able to record its highest profit margins in seven years.

(With inputs from agencies)

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