Reuters reported Wednesday that German auto company Volkswagen is considering temporary layoffs if the coronavirus has too much of an impact on its supply line. An agreement has reportedly been made with unions at the company’s factory in Spain to send workers home should production be impacted.

Roughly 4,800 workers are employed at the plant, which is based out of Pamplona in Spain’s Navarra region. It is unknown how many workers would be sent home if this plan was put into effect.

The plant, which was established in 1965, produces Polo and T-Cross models.

Spain has been working on plans to allow temporary layoffs such as these while minimizing the impact on the workers themselves. At the Navarra plant, plans currently fall for workers to keep all of their salaries in the event of layoffs. They will, however, lose any opportunities for extra pay, like overtime or overnight shifts. The Spanish government is also working to ensure that layoffs for all workers do not affect unemployment benefits.

The Spanish factory is currently experiencing no issues with supply but talks are taking place as a precaution.

The deal with the plant’s two major unions is designed to go into effect at any point in 2020.

Seemingly independent of the global outbreak of coronavirus, sales of new cars in Spain dipped 6% in February. This is largely attributed to a decline in private sales, which plummeted by 11% last month, following nearly 17 consecutive months of decline.

The Spanish auto market is expected to drop by 4% overall this year.

Electric cars have taken centre stage at Volkswagen
Electric cars have taken centre stage at Volkswagen AFP / RONNY HARTMANN
RELATED STORIES
Coronavirus Volkswagen