Zara owner Inditex agrees to renew bonus for shop workers in Spain
Reuters
Published Feb 06, 2024 12:54PM ET
Updated Feb 06, 2024 01:56PM ET
MADRID (Reuters) - Zara owner Inditex (BME:ITX) has agreed to pay annual bonuses of 1,000 euros ($1,075) for a second year running to the roughly 28,000 shop workers in its home country of Spain this month, a union leader said on Tuesday.
The world's biggest listed fashion retailer agreed the one-off annual payment with the country's largest union, despite a difficult economic backdrop for the retail sector, with global rival H&M (ST:HMb) seeking to shut stores and reduce staffing in Spain.
The CCOO union said that nearly all workers in Inditex stores will receive the bonus, which is dependent on a worker's store hitting at least 80% of its sales target. A similar sales incentive was offered last year.
Swedish fashion retailer H&M, which has struggled to compete with Zara and online low-price fast-fashion giant Shein, has said it intends to close 28 Spanish stores - more than a fifth of its outlets in the country - and lay off up to 588 workers.
"Inditex's economic situation is different from H&M's," said Lucia Trenor, a CCOO representative, adding that her union would continue to negotiate for higher wages beyond the one-off bonus.
($1 = 0.9303 euros)
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Written By: Reuters
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