©Reuters. File photo: Shoppers walk in front of the Zara clothing store, part of the Spanish group Inditex, in Las Palmas de Gran Canaria, Spain, on December 13, 2022.Reuters/Borja Suarez/File photo
MADRID (Reuters) – Zara owner Inditex BME:) agreed this month to pay an annual bonus of 1,000 euros (about $1,075) for the second year in a row to about 28,000 store workers in its home country of Spain, union leaders announced on Tuesday.
The world’s largest publicly traded fashion retailer is facing tough economic conditions for the retail industry, with global rival H&M (ST:) calling for store closures and job cuts in Spain, despite the country’s largest union They agreed to pay an annual lump sum.
The CCOO union said nearly all workers at Inditex stores will receive bonuses, but the bonuses will depend on the workers’ stores achieving at least 80% of sales targets. Similar sales incentives were offered last year.
Swedish fashion retailer H&M, which is struggling to compete with ZARA and online low-cost fast fashion giant Shine, plans to close 28 stores in Spain, more than a fifth of its stores, and lay off up to 588 stores. announced. Worker.
“The economic situation at Inditex is different from the economic situation at H&M,” CCOO president Lucia Treanor said, adding that the union would continue to negotiate wage increases beyond the one-time bonus.
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