Asger Risom
By finalizing a four-year labor agreement at its Valencia plant, Ford has cleared the runway for Chinese automaker Geely to manufacture EVs inside the EU, using Spain as a strategic foothold for European expansion.
Ford and the majority labor union at its Almussafes plant in Valencia, Spain, have finalized a critical four-year labor agreement. The deal clears a major operational hurdle ahead of the arrival of Chinese automaker Geely, which recently entered a manufacturing joint venture to co-produce vehicles at the facility.
As reported by spanish elEconomista, the new “2030 Agreement”—negotiated between plant management and the UGT union representing the majority of the plant’s 4,150 workers—secures workforce stability for the upcoming transition. The agreement goes into effect on January 1, 2027, and remains valid through 2030. The minority union, STM Intersindical, declined to endorse the deal due to disagreements over mandatory weekend shifts.
The partnership between Ford and Geely Auto, announced in July 2026, aims to share production capacity at the underutilized Valencia hub. Starting in 2028, the plant will assemble up to five new multi-energy and electric vehicles for the European market: three for Ford and two for Geely. By leveraging Ford’s existing European infrastructure, Geely effectively secures a springboard into the EU market, bypassing the delays and regulatory friction of building a new factory from scratch.
Inflation protections and salary caps
The core of the negotiations centered on protecting workers’ purchasing power following years of wage stagnation, while maintaining the competitive cost benchmarks required by the alliance. Under the finalized agreement, wage increases will tie directly to Spain’s Consumer Price Index (CPI), starting in 2027 with a boost equal to actual CPI plus 1.5%—guaranteeing a minimum 3% raise and capping out at 5%.
From 2028 through 2030, annual raises will match CPI plus 1%, with a guaranteed floor of 2.5% and the same 5% yearly ceiling. Across the four-year lifespan of the agreement, workers are guaranteed a minimum cumulative wage increase of 10.5%, capped at an absolute maximum of 20% regardless of economic conditions.
To address union concerns over runaway inflation, the contract includes a retroactive review clause allowing a dedicated monitoring committee to determine compensation if inflation exceeds the 5% cap. Additionally, the company’s annual employee bonus will rise from €600 to €1,000, becoming permanently consolidated into base salary tables starting in 2029.
Launch bonuses and mandatory Saturdays
To accommodate the launch of five new vehicle lines alongside existing Ford Kuga production, the factory will operate with increased flexibility. The agreement permits Ford to schedule up to eight mandatory working Saturdays per employee each year based on production demand, supported by dedicated flexibility bonuses for affected workers.
Management has also introduced a temporary launch bonus system tied to new product rollouts, offering employees between 5% and 6% of their annual salary during intense retooling and initial assembly phases.
