Palmela Autoeuropa Staff Win 2026 Pay Rise, Vow More Protests

The Portugal Metalworkers Federation FIEQUIMETAL has confirmed that shop-floor representatives from Volkswagen Autoeuropa and its main suppliers intend to keep protesting the Government’s labour-reform package, a decision that could still affect pay packets, production calendars and public revenue even though the factory has a fresh wage agreement of its own.

Why This Matters

• Pay rises already secured – Autoeuropa employees will see a minimum €100 increase in 2026, regardless of the wider dispute.

• Factory shutdowns booked – 70 idle days are planned for retooling; more stoppages are possible if strikes go ahead.

• Lay-off with full salary – Workers in Palmela will receive 100% of base pay during any authorised lay-off next year.

• Ripple effect on Setúbal district – The plant accounts for over 70% of Portugal’s car-industry turnover; any slowdown hits subcontractors, municipal taxes and local jobs.

Two Parallel Fights at Palmela

On one track, the Autoeuropa Works Council negotiated a company deal that 56% of the nearly 5,000-strong workforce endorsed in a 9 February referendum. That accord locks in wage hikes, bonuses and job security until June 2027.

Running in the opposite lane is a broader campaign led by SITE SUL, SINDEL and STASA, three of Portugal’s most active industrial unions. They argue that the national labour package drafted in Lisbon would make it easier for firms to outsource, freeze seniority increments and dilute collective-bargaining power. Thursday’s meeting in Palmela ended with a pledge to join the CGTP-IN demonstration planned for the capital and to “take the fight back to each shop floor.”

What Is Actually in the Factory Deal

The agreement specific to Volkswagen’s Portuguese unit contains several headline measures:

2.8% raise in January 2026 and another 2.5% in October, each with a €50 floor.

€500 one-off signing bonus paid immediately.

€50 monthly attendance premium through June 2027, now extended to cover sick leave and court duties.

Meal allowance lifted to €5 per shift, including for employees on remote tasks.

Objective bonus uplifted to 150% of the current cap.

Full salary during lay-off, should parts shortages or retooling shut the lines.

New shift model to be voted on by March and introduced in June 2026.

The Works Council sells the package as a buffer against industry turbulence. Critics counter that the improvements largely offset inflation and do little for long-term purchasing power.

Why the Unions Are Still Unhappy

Union officials accuse Volkswagen Autoeuropa Portugal of driving down supplier contracts, which, in their view, suppress pay scales in logistics, plastics and maintenance teams. They also say the Government’s labour reform would cap overtime premiums and shorten collective-bargaining coverage, ultimately hurting thousands of workers who earn far less than the plant’s direct staff.

“Accepting decent terms inside the main gate doesn’t mean we surrender on the outside,” one SITE SUL delegate told reporters after the Palmela session. The labour federation insists that continued pressure is the only way to defeat what it calls a “wage-squeeze agenda.”

Production Stops Already in the Diary

Even without walk-outs, 2026 will be choppy. Autoeuropa has scheduled about 70 days of downtime to install EV lines for the next-generation T-Roc hybrid and the fully electric ID.Every1. January’s component shortage – blamed on storms that closed Tanger-Med port – already cut national car output by 7.8% year-on-year. Additional strikes could widen that gap, threatening Portuguese export revenue and the region’s supplier ecosystem.

What This Means for Residents

• Workers – If you are on Autoeuropa’s payroll, your core salary is protected through mid-2027; however, outsourced staff should check whether their firms are covered by the main agreement or face separate negotiations.• Local businesses – Expect uneven demand from the plant during shutdown weeks. Hospitality in Palmela and Setúbal typically sees a 20–25% fall in lunch trade whenever the factory closes.• Commuters – Industrial-action days bring lighter traffic on the A2 in the morning but heavier flows around Lisbon later as marches converge on the city centre.• Municipal budgets – Palmela counts on Autoeuropa for a hefty slice of its IMI and IRC receipts. A prolonged slowdown could delay planned upgrades to public transport and school facilities.

Next Dates to Watch

• March 2026 – referendum on the new shift pattern.

• June 2026 – official start of the revised rota and first big retooling stoppage.

• October 2026 – second wage increase under the plant agreement.

• “Spring window” (yet to be fixed) – CGTP-IN’s nationwide protest tour targeting the Government’s labour reforms.

Stakeholders inside Portugal’s flagship car factory have secured short-term gains, but the larger confrontation over national labour rules remains unresolved. For residents and investors alike, the take-away is clear: keep an eye on Palmela – its assembly lines still set the tempo for the region’s jobs, traffic and tax revenue.